Common use of Distribution on Account of Financial Hardship Clause in Contracts

Distribution on Account of Financial Hardship. If elected by the Employer in the Adoption Agreement, distributions may be made from a Participant's Elective Deferral, Qualified Nonelective Contribution Account, vested portion of the Participant's Employer Discretionary Contribution Account, or the vested portion of the Employer Matching Contribution Account on account of financial hardship if the distribution is necessary in light of the immediate and heavy financial needs of the Participant. Effective for Plan Years beginning on or after January 1, 1989, distributions on account of financial hardship with respect to Elective Deferrals shall be limited to the amount of the Participant's Elective Deferrals and income allocable to such contributions credited to the Participant's Elective Deferral Account as of the end of the last Plan Year ending before July 1, 1989; neither the income allocable to Elective Deferrals credited to a Participant's Elective Deferral Account after the end of the last Plan Year ending before July 1, 1989 nor a Participant's Qualified Non-elective Contribution Account shall be available for such distributions.