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What is the maximum amount of elective contributions that can be distributed as a hardship distribution from a 401(k) plan?

April 26, 2017contributions distributed distribution elective hardship maximum Plan

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What is the maximum amount of elective contributions that can be distributed as a hardship distribution from a 401(k) plan?

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The amount of elective contributions available for a hardship distribution cannot be more than the amount of the employee’s total elective contributions, including designated Roth contributions, as of the date of distribution reduced by the amount of previous distributions of elective contributions. This “maximum distributable amount” generally does not include earnings, qualified nonelective contributions or qualified matching contributions, unless the plan provides that certain grandfathered amounts are included. Other amounts under the plan, if any, such as regular matching contributions and discretionary profit-sharing contributions may also be distributed on account of hardship if the plan so provides. (Reg. §1.