What would qualify a participant for a hardship withdrawal under the 401(k) Plan?
The 401(k) Plan contains a provision permitting the withdrawal of funds to meet an “immediate and heavy financial need” as that term is defined by the Internal Revenue Code. For example, the need to pay funeral expenses of a family member would constitute an immediate and heavy financial need. However, the purchase of a boat or television would not constitute an immediate and heavy financial need. The Internal Revenue Code provides that, as a source of funds, the Deferred Compensation Plan is considered by the Internal Revenue Code as a last resort. Therefore, a participant must have used other means of securing funds, such as insurance payments; personal, pension, and MCU loans; and available personal assets before applying for an emergency or hardship withdrawal from the Plan. How does a participant apply for an emergency or hardship withdrawal from the Plan? To apply for an emergency or hardship withdrawal from the Plan, a participant must submit a hardship application to the Deferr
