Hardship Withdrawals. If so provided by the Employer in Subsection 1.19(a) of the Adoption Agreement, a Participant who continues in employment as an Employee may apply for a hardship withdrawal. Unless provided otherwise in the Service Agreement, the Participant may apply by certifying to the Administrator all of the required criteria specified in this Section. Such certification shall represent that the Participant has documentation substantiating the hardship. Such a hardship withdrawal may include all or any portion of the Accounts specified by the Employer in Subsection 1.19(a)(1) of the Adoption Agreement and Section (c) of the In-Service Withdrawals Addendum to the Adoption Agreement, if applicable, excluding any earnings on the Deferral Contributions Account accrued after the later of December 31, 1988 or the last day of the last Plan Year ending before July 1, 1989. The minimum amount, if any, that a Participant may withdraw because of hardship is the dollar amount specified by the Employer in Subsection 1.19(a) of the Adoption Agreement. For purposes of this Section 10.05, a withdrawal is made on account of hardship if made on account of an immediate and heavy financial need of the Participant where such Participant lacks other available resources. The Administrator shall direct the Trustee with respect to hardship withdrawals and those withdrawals shall be based on the following special rules: (a) The following are the only financial needs considered immediate and heavy: (1) expenses incurred or necessary for medical care (that would be deductible under Code Section 213(d), determined without regard to whether the expenses exceed any applicable income limit) of the Participant, the Participant’s Spouse, children, or dependents, or a primary beneficiary of the Participant; (2) costs directly related to the purchase (excluding mortgage payments) of a principal residence for the Participant; (3) payment of tuition, related educational fees, and room and board for the next 12 months of post-secondary education for the Participant, the Participant’s Spouse, children or dependents (as defined in Code Section 152, without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) , or a primary beneficiary of the Participant; (4) payments necessary to prevent the eviction of the Participant from, or a foreclosure on the mortgage on, the Participant’s principal residence; (5) payments for funeral or burial expenses for the Participant’s deceased parent, Spouse, child, or dependent (as defined in Code Section 152, without regard to subsection (d)(1)(B) thereof) , or a primary beneficiary of the Participant; (6) expenses for the repair of damage to the Participant’s principal residence that would qualify for a casualty loss deduction under Code Section 165 (determined without regard to whether the loss exceeds any applicable income limit); or (7) any other financial need determined to be immediate and heavy under rules and regulations issued by the Secretary of the Treasury or his delegate; provided, however, that any such financial need shall constitute an immediate and heavy need under this paragraph (7) no sooner than administratively practicable following the date such rule or regulation is issued. For purposes of this Section, the term “primary beneficiary” means a Beneficiary under the Plan who has an unconditional right to all or a portion of the Participant’s Account upon the death of the Participant. (b) A distribution shall be considered as necessary to satisfy an immediate and heavy financial need of the Participant only if: (1) The Participant has obtained all distributions, other than the hardship withdrawal, and all nontaxable (at the time of the loan) loans currently available under all plans maintained by the Employer or any Related Employer; (2) The Participant suspends Deferral Contributions and Employee Contributions to the Plan for the 6-month period following receipt of his hardship withdrawal. The suspension must also apply to all elective contributions and employee contributions to all other qualified plans and non-qualified plans maintained by the Employer or any Related Employer, other than any mandatory employee contribution portion of a defined benefit plan, including stock option, stock purchase, and other similar plans, but not including health and welfare benefit plans (other than the cash or deferred arrangement portion of a cafeteria plan); and (3) The withdrawal amount is not in excess of the amount of an immediate and heavy financial need (including amounts necessary to pay any Federal, state or local income taxes or penalties reasonably anticipated to result from the distribution).
Appears in 3 contracts
Samples: Defined Contribution Plan (Profit Sharing/401(k) Plan) (Alcoa Inc.), Defined Contribution Plan (Profit Sharing/401(k) Plan) (Alcoa Inc.), Defined Contribution Plan (Profit Sharing/401(k) Plan) (Alcoa Inc.)
Hardship Withdrawals. If so provided by the Employer in Subsection 1.19(a1.18(a) of the Adoption Agreement, a Participant who continues in employment as an Employee may apply to the Administrator for a hardship withdrawal. Unless provided otherwise in the Service Agreement, the Participant may apply by certifying to the Administrator all withdrawal of the required criteria specified in this Section. Such certification shall represent that the Participant has documentation substantiating the hardship. Such a hardship withdrawal may include all or any portion of the Accounts specified by the Employer in Subsection 1.19(a)(1) of the Adoption Agreement and Section his Deferral Contributions Account (c) of the In-Service Withdrawals Addendum to the Adoption Agreement, if applicable, excluding any earnings on the Deferral Contributions Account thereon accrued after the later of December 31, 1988 or the last day of the last Plan Year ending before July 1, 1989) and, if so provided by the Employer in Subsection 1.18(d)(2), such other Accounts as may be specified in Subsection (c) of the Protected In-Service Withdrawals Addendum to the Adoption Agreement. The minimum amount, if any, amount that a Participant may withdraw because of hardship is the dollar amount specified by the Employer in Subsection 1.19(a) of the Adoption Agreement$500. For purposes of this Section 10.05, a withdrawal is made on account of hardship if made on account of an immediate and heavy financial need of the Participant where such Participant lacks other available resources. The Administrator shall direct the Trustee Determinations with respect to hardship withdrawals shall be made by the Administrator and those withdrawals shall be conclusive for purposes of the Plan, and shall be based on the following special rules:
(a) The following are the only financial needs considered immediate and heavy:
(1) expenses incurred or necessary for medical care (that would be deductible under within the meaning of Code Section 213(d), determined without regard to whether the expenses exceed any applicable income limit) of the Participant, the Participant’s Spouse's spouse, children, or dependents, or a primary beneficiary of the Participant;
(2) costs directly related to the purchase (excluding mortgage payments) of a principal residence for the Participant;
(3) payment of tuition, related educational fees, and room and board for the next 12 months of post-secondary education for the Participant, the Participant’s Spouse's spouse, children or dependents (as defined in Code Section 152, without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) , or a primary beneficiary of the Participantdependents;
(4) payments necessary the need to prevent the eviction of the Participant from, or a foreclosure on the mortgage onof, the Participant’s 's principal residence;
(5) payments for funeral or burial expenses for the Participant’s deceased parent, Spouse, child, or dependent (as defined in Code Section 152, without regard to subsection (d)(1)(B) thereof) , or a primary beneficiary of the Participant;
(6) expenses for the repair of damage to the Participant’s principal residence that would qualify for a casualty loss deduction under Code Section 165 (determined without regard to whether the loss exceeds any applicable income limit); or
(75) any other financial need determined to be immediate and heavy under rules and regulations issued by the Secretary of the Treasury or his delegate; provided, however, that any such financial need shall constitute an immediate and heavy need under this paragraph (7) no sooner than administratively practicable following the date such rule or regulation is issued. For purposes of this Section, the term “primary beneficiary” means a Beneficiary under the Plan who has an unconditional right to all or a portion of the Participant’s Account upon the death of the Participant.
(b) A distribution shall be considered as necessary to satisfy an immediate and heavy financial need of the Participant only if:
(1) The Participant has obtained all distributions, other than the hardship withdrawal, and all nontaxable (at the time of the loan) loans currently available under all plans maintained by the Employer or any Related Employer;
(2) The Participant suspends Deferral Contributions and Employee Contributions to the Plan for the 612-month period following receipt the date of his hardship withdrawal. The suspension must also apply to all elective contributions and employee contributions to all other qualified plans and non-qualified plans maintained by the Employer or any Related Employer, other than any mandatory employee contribution portion of a defined benefit plan, including stock option, stock purchase, and other similar plans, but not including health and welfare benefit plans (other than the cash or deferred arrangement portion of a cafeteria plan); and;
(3) The withdrawal amount is not in excess of the amount of an immediate and heavy financial need (including amounts necessary to pay any Federal, state or local income taxes or penalties reasonably anticipated to result from the distribution); and
(4) The Participant agrees to limit Deferral Contributions (and "elective deferrals", as defined in Subsection 6.01(U) to the Plan and any other qualified plan maintained by the Employer or a Related Employer for the calendar year immediately following the calendar year in which the Participant received the hardship withdrawal to the applicable limit under Code Section 402(g) for such calendar year less the amount of the Participant's Deferral Contributions (and "elective deferrals") for the calendar year in which the Participant received the hardship withdrawal.
Appears in 1 contract
Hardship Withdrawals. If so provided Upon sub- mission of satisfactory evidence by the Employer in Subsection 1.19(a) of the Adoption Agreement, a Participant who continues of a financial hardship, as defined in employment as an Employee may apply for a hardship withdrawal. Unless provided otherwise in the Service Agreementthis Section, the Participant Committee may apply by certifying to the Administrator direct distribution of part or all of the value of such Participant’s Pre-Tax Savings and Xxxx Savings (not including any earnings on such amounts after December 31, 1988), but only to the extent required criteria specified in this Sectionto relieve such financial hardship, taking into account such additional amounts necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated to result from the distribution. Such certification No such withdrawal shall represent that be permitted unless the Participant has documentation substantiating previously or concurrently withdrawn all amounts otherwise available to him under the hardshipPlan. Such In no event may the Committee direct that such a hardship withdrawal may include all or any portion of the Accounts specified by the Employer in Subsection 1.19(a)(1) of the Adoption Agreement and Section (c) of the In-Service Withdrawals Addendum be made to the Adoption Agreement, if applicable, excluding any earnings on extent the Deferral Contributions Account accrued after financial hardship may be relieved from other resources that are reasonably available to the later of December 31, 1988 or the last day of the last Plan Year ending before July 1, 1989. The minimum amount, if any, that a Participant may withdraw because of hardship is the dollar amount specified by the Employer in Subsection 1.19(a) of the Adoption Agreement. For purposes of this Section 10.05, a withdrawal is made on account of hardship if made on account of an immediate and heavy financial need of the Participant where such Participant lacks other available resources. The Administrator shall direct the Trustee with respect to hardship withdrawals and those withdrawals shall be based on the following special rules:
(a) The following are the only financial needs considered immediate and heavy:Participant.
(1) medical expenses (as defined in section 213(d) of the Code) previously incurred by the Participant or a Participant’s spouse or dependent or the Participant’s Beneficiary (excluding contingent Beneficiaries) or expenses necessary for these persons to obtain medical care (that would be deductible under Code Section as defined in section 213(d), determined without regard to whether the expenses exceed any applicable income limit) of the ParticipantCode) which, the Participant’s Spousein either case, children, or dependents, or a primary beneficiary of the Participant;are not covered by insurance,
(2) costs expenses relating to the payment of tuition and related educational fees, including room and board, for the next twelve months of post secondary education of a Participant or his spouse, dependent or Beneficiary (excluding contingent Beneficiaries),
(3) expenses directly related relating to the purchase (excluding mortgage payments) of a principal primary residence for the Participant;
(3) payment of tuition, related educational fees, and room and board for the next 12 months of post-secondary education for the Participant, the Participant’s Spouse, children or dependents (as defined in Code Section 152, without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) , or a primary beneficiary of the Participant;,
(4) payments necessary expenses relating to the need to prevent the eviction of the Participant from, from his principal residence or a foreclosure on the mortgage on, of the Participant’s principal residence;,
(5) payments expenses relating to funerals for funeral or burial expenses for the a Participant’s deceased parent, Spousespouse, child, or dependent (as defined in Code Section 152, without regard to subsection (d)(1)(B) thereof) dependent, or a primary beneficiary of the Participant;Beneficiary (excluding contingent Beneficiaries),
(6) expenses for related to the repair of damage to the Participant’s principal residence that would qualify for a casualty loss deduction on the Participant’s federal income tax return, or assistance with respect to the disaster. There is no minimum amount of hardship withdrawal under Code Section 165 (determined without regard to whether the loss exceeds any applicable income limit); orPlan. Hardship withdrawals shall be paid in a single cash payment and on a pro rata basis from the investment funds in which the Participant’s Pre-Tax Savings Account and Xxxx Savings Account, as applicable, are invested.
(7a) any other financial need determined to be immediate IRS Announcement 2017-13: Hurricane Xxxx
(i) Notwithstanding the foregoing, for hardship withdrawals made on or after September 4, 2017 and heavy under rules and regulations issued by the Secretary of the Treasury or his delegate; providedno later than January 31, however2018, that any such financial need shall constitute an immediate and heavy need under this paragraph (7) no sooner than administratively practicable following the date such rule or regulation is issued. For purposes of this Section, the term “primary beneficiary” means a Beneficiary withdrawal under the Plan who has an unconditional right is hereby deemed to all or be on account of a portion of the Participant’s Account upon the death of the Participant.
financial hardship (b) A distribution shall be considered as necessary to satisfy an immediate and heavy financial need need) if the withdrawal is made (A) principal residence on September 4, 2017 was located in one of the Participant only if:
Florida (1or other state) The Participant has obtained all distributions, other than the hardship withdrawal, and all nontaxable (at the time counties identified for individual assistance by FEMA because of the loan) loans currently available under all plans maintained by the Employer or any Related Employer;
(2) The Participant suspends Deferral Contributions and Employee Contributions to the Plan for the 6-month period following receipt of his hardship withdrawal. The suspension must also apply to all elective contributions and employee contributions to all other qualified plans and non-qualified plans maintained by the Employer or any Related Employer, other than any mandatory employee contribution portion of a defined benefit plan, including stock option, stock purchase, and other similar plans, but not including health and welfare benefit plans (other than the cash or deferred arrangement portion of a cafeteria plan); and
(3) The withdrawal amount is not in excess of the amount of an immediate and heavy financial need (including amounts necessary to pay any Federal, state or local income taxes or penalties reasonably anticipated to result from the distribution).devastation caused by
Appears in 1 contract
Samples: Savings Plan
Hardship Withdrawals. If so provided by the Employer in Subsection 1.19(a1.18(a) of the Adoption Agreement, a Participant who continues in employment as an Employee may apply to the Administrator for a hardship withdrawal. Unless provided otherwise in the Service Agreement, the Participant may apply by certifying to the Administrator all withdrawal of the required criteria specified in this Section. Such certification shall represent that the Participant has documentation substantiating the hardship. Such a hardship withdrawal may include all or any portion of the Accounts specified by the Employer in Subsection 1.19(a)(1) of the Adoption Agreement and Section his Deferral Contributions Account (c) of the In-Service Withdrawals Addendum to the Adoption Agreement, if applicable, excluding any earnings on the Deferral Contributions Account thereon accrued after the later of December 31, 1988 or the last day of the last Plan Year ending before July 1, 1989) and, if so provided by the Employer in Subsection 1.18(d)(2), such other Accounts as may be specified in Subsection (c) of the Protected In-Service Withdrawals Addendum to the Adoption Agreement. The minimum amount, if any, amount that a Participant may withdraw because of hardship is the dollar amount specified by the Employer in Subsection 1.19(a) of the Adoption Agreement$500. For purposes of this Section 10.05, a withdrawal is made on account of hardship if made on account of an immediate and heavy financial need of the Participant where such Participant lacks other available resources. The Administrator shall direct the Trustee Determinations with respect to hardship withdrawals shall be made by the Administrator and those withdrawals shall be conclusive for purposes of the Plan, and shall be based on the following special rules:
(a) The following are the only financial needs considered immediate and heavy:
(1) expenses incurred or necessary for medical care (that would be deductible under within the meaning of Code Section 213(d), determined without regard to whether the expenses exceed any applicable income limit) of the Participant, the Participant’s Spouse's spouse, children, or dependents, or a primary beneficiary of the Participant;
(2) costs directly related to the purchase (excluding mortgage payments) of a principal residence for the Participant;
(3) payment of tuition, related educational fees, and room and board for the next 12 months of post-secondary education for the Participant, the Participant’s Spouse's spouse, children or dependents (as defined in Code Section 152, without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) , or a primary beneficiary of the Participantdependents;
(4) payments necessary the need to prevent the eviction of the Participant from, or a foreclosure on the mortgage onof, the Participant’s 's principal residence;
(5) payments for funeral or burial expenses for the Participant’s deceased parent, Spouse, child, or dependent (as defined in Code Section 152, without regard to subsection (d)(1)(B) thereof) , or a primary beneficiary of the Participant;
(6) expenses for the repair of damage to the Participant’s principal residence that would qualify for a casualty loss deduction under Code Section 165 (determined without regard to whether the loss exceeds any applicable income limit); or
(75) any other financial need determined to be immediate and heavy under rules and regulations issued by the Secretary of the Treasury or his delegate; provided, however, that any such financial need shall constitute an immediate and heavy need under this paragraph (7) no sooner than administratively practicable following the date such rule or regulation is issued. For purposes of this Section, the term “primary beneficiary” means a Beneficiary under the Plan who has an unconditional right to all or a portion of the Participant’s Account upon the death of the Participant.
(b) A distribution shall be considered as necessary to satisfy an immediate and heavy financial need of the Participant only if:
(1) The Participant has obtained all distributions, other than the hardship withdrawal, and all nontaxable (at the time of the loan) loans currently available under all plans maintained by the Employer or any Related Employer;
(2) The Participant suspends Deferral Contributions and Employee Contributions to the Plan for the 612-month period following receipt the date of his hardship withdrawal. The suspension must also apply to all elective contributions and employee contributions to all other qualified plans and non-qualified plans maintained by the Employer or any Related Employer, other than any mandatory employee contribution portion of a defined benefit plan, including stock option, stock purchase, and other similar plans, but not including health and welfare benefit plans (other than the cash or deferred arrangement portion of a cafeteria plan); and;
(3) The withdrawal amount is not in excess of the amount of an immediate and heavy financial need (including amounts necessary to pay any Federal, state or local income taxes or penalties reasonably anticipated to result from the distribution); and
(4) The Participant agrees to limit Deferral Contributions (and "elective deferrals", as defined in Subsection 6.01(i)) to the Plan and any other qualified plan maintained by the Employer or a Related Employer for the calendar year immediately following the calendar year in which the Participant received the hardship withdrawal to the applicable limit under Code Section 402(g) for such calendar year less the amount of the Participant's Deferral Contributions (and "elective deferrals") for the calendar year in which the Participant received the hardship withdrawal.
Appears in 1 contract
Hardship Withdrawals. If so provided (a) Hardship Withdrawals will be available under the terms of these Regulations for Members.
(b) Applications for Hardship Withdrawals must be submitted to the Plan Administrator. The Plan Administrator will consider such applications and requests at least once a month. Members shall pre-qualify for Hardship Withdrawals in accordance with the procedures established by the Employer in Subsection 1.19(a) of Plan Administrator. Hardship Withdrawals, when the Adoption AgreementPlan Administrator has pre-qualified the Member, will be made effective (unless denied): on the date the Hardship Withdrawal applications actually received provided it is received on a Participant who continues in employment as an Employee may apply Valuation Date before the New York Stock Exchange closes for trading; or on the Valuation Date next succeeding the day on which it is actually received, if it is not received on a hardship withdrawal. Unless provided otherwise in Valuation Date or if it is received on a Valuation Date after the Service Agreement, the Participant may apply by certifying to the Administrator all of the required criteria specified in this Section. Such certification shall represent that the Participant has documentation substantiating the hardship. Such a hardship withdrawal may include all or any portion of the Accounts specified by the Employer in Subsection 1.19(a)(1) of the Adoption Agreement and Section New York Stock Exchange closes for trading.
(c) of the In-Service Withdrawals Addendum A Member may withdraw such amounts as are needed to satisfy such Member’s immediate and heavy financial need, in accordance with and subject to the Adoption Agreement, if applicable, excluding any earnings on the Deferral Contributions Account accrued after the later of December 31, 1988 or the last day of the last Plan Year ending before July following conditions:
(1, 1989. The minimum amount, if any, that a Participant may withdraw because of hardship is the dollar amount specified by the Employer in Subsection 1.19(a) of the Adoption Agreement. For purposes of this Section 10.05, a withdrawal is made on account of hardship if A distribution will be deemed to be made on account of an immediate and heavy financial need of if the Participant where such Participant lacks other available resources. The Administrator shall direct the Trustee with respect to hardship withdrawals and those withdrawals shall be based distribution is on the following special rulesaccount of:
(aA) The following are Payment of tuition and related educational fees as specified by the only financial needs considered immediate and heavy:
Commissioner of the Internal Revenue Service for the next 12 months or portion thereof of post-secondary education for the Member, such Member’s spouse, child or children, or dependents (as defined in Section 152 of the Code, and, for taxable years beginning on or after January 1) expenses incurred or necessary for medical care (that would be deductible under Code Section 213(d), determined 2005, without regard to whether the expenses exceed any applicable income limitSection 152(b)(1), (b)(2) and (d)(1)(B) of the Participant, the Participant’s Spouse, children, or dependents, or a primary beneficiary of the Participant;Code); Index
(2B) costs directly related to the purchase Purchase (excluding mortgage payments) of a principal residence for of the ParticipantMember;
(3C) payment Medical and dental expenses described in Section 213(d) of tuitionthe Code previously incurred by the Member, related educational feessuch Member’s spouse, or any dependents of the Member, within the meaning of Section 152 of the Code (consistent with the definition of dependent as used in the application of Sections 105 and room and board 106 of the Code), or necessary for these persons to obtain medical or dental care described in Section 213(d) of the Code;
(D) The need to prevent the eviction of the Member from such Member’s principal residence or foreclosure on the mortgage of the Member’s principal residence;
(E) Payments for burial or funeral expenses for the next 12 months of post-secondary education for the ParticipantMember’s deceased parent or parents, the Participant’s Spousespouse, children child or children, or dependents (as defined in Code Section 152152 of the Code, and, for taxable years beginning on or after January 1, 2005, without regard to subsections (b)(1), (b)(2), and (d)(1)(BSection 152(d)(1)(B) thereof) , or a primary beneficiary of the ParticipantCode);
(4F) payments necessary to prevent the eviction of the Participant from, or a foreclosure on the mortgage on, the Participant’s principal residence;
(5) payments for funeral or burial expenses for the Participant’s deceased parent, Spouse, child, or dependent (as defined in Code Section 152, without regard to subsection (d)(1)(B) thereof) , or a primary beneficiary of the Participant;
(6) expenses Expenses for the repair of damage to the ParticipantMember’s principal residence that would qualify for a the casualty loss deduction under Code Section 165 of the Code (determined without regard to whether the loss exceeds any applicable income limit10% of the Member’s adjusted gross income); or
(7G) any Such other financial need determined to be immediate and heavy under rules and regulations issued reason as the Commissioner of the Internal Revenue Service shall approve through communications of general applicability; provided such reason is expressly included by the Secretary of Plan Administrator as a certifiable reason for the Treasury or his delegate; provided, however, that any such financial need shall constitute an immediate and heavy need under this paragraph (7) no sooner than administratively practicable following the date such rule or regulation is issued. For purposes of this Section, the term “primary beneficiary” means a Beneficiary under the Plan who has an unconditional right to all or a portion of the Participant’s Account upon the death of the ParticipantHardship Withdrawal.
(bd) A distribution Hardship Withdrawals shall be considered as necessary to satisfy an immediate and heavy financial need of the Participant only if:
(1) The Participant has obtained all distributions, other than the hardship withdrawal, and all nontaxable (at the time of the loan) loans currently available under all plans maintained by the Employer or any Related Employer;
(2) The Participant suspends Deferral Contributions and Employee Contributions to the Plan for extent that the 6-month period following receipt of his hardship withdrawal. The suspension must also apply to all elective contributions and employee contributions to all other qualified plans and non-qualified plans maintained by the Employer or any Related Employer, other than any mandatory employee contribution portion of a defined benefit plan, including stock option, stock purchase, and other similar plans, but not including health and welfare benefit plans (other than the cash or deferred arrangement portion of a cafeteria plan); and
(3) The withdrawal amount requested is not in excess of the amount required to relieve the hardship, or to the extent that such need may not be satisfied from other resources that are reasonably available to the Member, including assets of an immediate such Member’s spouse and heavy financial need (including minor dependents. The amount requested may include amounts necessary to pay any Federalfederal, state state, or local income taxes or penalties reasonably anticipated to result from the distributionHardship Withdrawal. The Member shall certify in his application for a Hardship Withdrawal:
(1) the amount needed to meet the hardship,
(2) that the hardship is of an immediate and heavy financial nature,
(3) the amount of funds reasonably available to him, his spouse, and minor dependents, and
(4) that he will in fact use such funds and the Hardship Withdrawal to meet the hardship. The Member shall also represent, and the Plan Administrator shall be entitled to reasonably rely upon the Member’s representation, that the need cannot be relieved:
(5) through reimbursement or compensation by insurance or otherwise; Index
(6) by reasonable liquidation of the Member’s assets, to the extent such liquidation would not itself cause an immediate and heavy financial need;
(7) by cessation of Salary Deferrals; or
(8) by (A) other distributions under this Fund and any other plans maintained by the Employer, or (B) borrowing tax-free (at the time of the loan) from this Fund and any other plan maintained by the Employer, or (C) borrowing from commercial sources on reasonable commercial terms. Notwithstanding the foregoing, the Plan Administrator shall require Members to first obtain all loans and other distributions (other than hardship distributions), under this Fund and, all other defined contribution plans of the Employer unless such loan or distribution would itself increase the immediate and heavy financial need.
(e) A Member may be denied a Hardship Withdrawal if he has a loan outstanding under the Fund and the Plan Administrator determines such a Hardship Withdrawal would impair the security for such loan.
(f) Hardship Withdrawals will be distributions under the Fund.
(g) The Member shall not be entitled to make any Member Contributions to the Fund or any other qualified plan maintained by the Employer, but excluding any health or welfare benefit plan.
(h) The amount of a Member’s Hardship Withdrawal shall not exceed the sum of such Member’s account balance, if any, as of December 31, 1988, in the Shell Pay Deferral Investment Fund, any elective deferrals or catch-up contributions made thereafter to the Shell Pay Deferral Investment Fund, and any Member Pre-Tax Contributions or Member Catch-Up Contributions made to the Fund, less previous distributions of elective deferrals or catch-up contributions.
(i) If a Member’s application for a Hardship Withdrawal is denied in whole or in part, the claims procedure of Article 20 shall apply.
Appears in 1 contract
Hardship Withdrawals. If so provided by the Employer in Subsection 1.19(a) of the Adoption Agreement, a Participant who continues in employment as an Employee may apply for a hardship withdrawal. Unless provided otherwise in the Service Agreement, the Participant may apply by certifying A withdrawal will not be considered to the Administrator all of the required criteria specified in this Section. Such certification shall represent that the Participant has documentation substantiating the hardship. Such a hardship withdrawal may include all or any portion of the Accounts specified by the Employer in Subsection 1.19(a)(1) of the Adoption Agreement and Section (c) of the In-Service Withdrawals Addendum to the Adoption Agreement, if applicable, excluding any earnings on the Deferral Contributions Account accrued after the later of December 31, 1988 or the last day of the last Plan Year ending before July 1, 1989. The minimum amount, if any, that a Participant may withdraw because of hardship is the dollar amount specified by the Employer in Subsection 1.19(a) of the Adoption Agreement. For purposes of this Section 10.05, a withdrawal is be made on account of hardship if made on account “Hardship” unless the following requirements are met:
(a) The withdrawal is requested because of an immediate and heavy financial need of the Participant, and will be so deemed if the Participant where such Participant lacks other available resources. The Administrator shall direct represents that the Trustee with respect to hardship withdrawals and those withdrawals shall be based withdrawal is made on the following special rulesaccount of:
(a) The following are the only financial needs considered immediate and heavy:
(1i) expenses incurred for (or necessary for to obtain) medical care incurred by the Participant, his spouse, children or dependents (as defined in Section 152, and, for taxable years beginning on or after January 1, 2005, without regard to Section 152(b)(1), (b)(2) and (d)(1)(B)), or the Participant’s primary beneficiary under the Plan that would be deductible under Code Section 213(d), ) (determined without regard to whether the expenses exceed any applicable income limit) 7.5% of the Participant, the Participant’s Spouse, children, or dependents, or a primary beneficiary of the Participantadjusted gross income);
(2ii) costs directly related to the purchase (excluding mortgage payments) of a principal residence for of the Participant;
(3iii) payment of tuition, tuition and related educational fees, and room and board fees for the next 12 months of post-secondary education for the Participant, the Participant’s Spousehis spouse, children or dependents (as defined in Code Section 152, and, for taxable years beginning on or after January 1, 2005, without regard to subsections (b)(1Section 152(b)(1), (b)(2), ) and (d)(1)(B) thereof) , or a the Participant’s primary beneficiary of under the ParticipantPlan;
(4iv) payments necessary the need to prevent the eviction of the Participant from, from his principal residence or a foreclosure on the mortgage on, of the Participant’s principal residence;
(5v) payments payment for burial or funeral or burial expenses for the Participant’s deceased parent, Spousespouse, childchildren, or dependent dependents (as defined in Code Section 152, 152 without regard to subsection Section 152(b)(1), (d)(1)(Bb)(2) thereofand 152(d)(1)(B)) , or a primary beneficiary of the Participant’s primary beneficiary;
(6vi) expenses for the repair of damage to the Participant’s principal residence that would qualify for a the casualty loss deduction under Code Section 165 (determined without regard to whether the loss exceeds any applicable income limitten percent of adjusted gross income); or
(7vii) any other financial need determined to be circumstances of immediate and heavy under rules and regulations issued by the Secretary financial need identified as such in revenue rulings, notices or other documents of the Treasury or his delegate; provided, however, that any such financial need shall constitute an immediate and heavy need under this paragraph (7) no sooner than administratively practicable following the date such rule or regulation is issued. For purposes Internal Revenue Service of this Section, the term “primary beneficiary” means a Beneficiary under the Plan who has an unconditional right to all or a portion of the Participant’s Account upon the death of the Participantgeneral applicability.
(b) A distribution shall The withdrawal must also be considered as necessary to satisfy an the immediate and heavy financial need of the Participant only Participant. The withdrawal will be deemed necessary to satisfy such need if:
(1i) The the Participant has obtained all distributions, other than represents that the hardship withdrawal, and all nontaxable (at the time of the loan) loans currently available under all plans maintained by the Employer or any Related Employer;
(2) The Participant suspends Deferral Contributions and Employee Contributions to the Plan for the 6-month period following receipt of his hardship withdrawal. The suspension must also apply to all elective contributions and employee contributions to all other qualified plans and non-qualified plans maintained by the Employer or any Related Employer, other than any mandatory employee contribution portion of a defined benefit plan, including stock option, stock purchase, and other similar plans, but not including health and welfare benefit plans (other than the cash or deferred arrangement portion of a cafeteria plan); and
(3) The withdrawal amount is not in excess of the amount of an the immediate and heavy financial need (including amounts necessary to pay taking into account any Federal, state applicable income or local income penalty taxes or penalties reasonably anticipated to result resulting from the distributionwithdrawal).;
(ii) the Participant has obtained all distributions (other than Hardship distributions under this subsection 10.3) and all nontaxable loans currently available under the Plan and all other plans maintained by the Employers and Related Companies; and
(iii) Before-Tax Contributions, After-Tax Contributions and Matching Contributions by or on behalf of the Participant shall be suspended for a period of six months after the Participant makes a Hardship withdrawal under this subsection 10.3, and the Participant shall be prohibited from making any contributions for the same period to any other deferred compensation plan (whether or not qualified), stock option, stock purchase or similar plan maintained by an Employer or Related Company..
Appears in 1 contract
Samples: 401(k) Savings and Retirement Plan (Castle a M & Co)
Hardship Withdrawals. If so provided by the Employer in Subsection 1.19(a(a) of the Adoption AgreementApplication for Hardship Withdrawal Prior to January 1, 1989. For Plan Years beginning before January 1, 1989, a Participant who continues in employment as is an Eligible Employee and who is suffering a qualifying financial hardship may apply for a hardship withdrawal. Unless provided otherwise in distribution from his or her Accounts by filing a written application for the Service Agreement, same with the Participant may apply by certifying to Committee stating the Administrator all amount of the required criteria specified in this Section. Such certification shall represent that distribution requested and the Participant has documentation substantiating the qualifying financial hardship. Such application may be approved by the Committee only if the Committee determines that the distribution applied for is necessary in light of a hardship withdrawal may include all or any portion financial need of the Accounts specified Participant which (A) is currently payable, (B) is extraordinary, (C) threatens the financial security of the Participant, and (D) is caused by the Employer qualifying financial hardship cited in Subsection 1.19(a)(1the application. The amount approved hereunder may not exceed (but may be less than) the amount the Committee determines is required to meet the immediate financial need created by the qualifying financial hardship cited in the application and which is not reasonably available from other resources of the Adoption Agreement Participant and Section (c) shall not exceed any limit on hardship withdrawals established by the Committee in its discretion to protect the benefits of Participants. The Committee's determination of the In-Service Withdrawals Addendum to the Adoption Agreement, if applicable, excluding any earnings on the Deferral Contributions Account accrued after the later existence of December 31, 1988 or the last day of the last Plan Year ending before July 1, 1989. The minimum amount, if any, that a Participant may withdraw because of hardship is the dollar amount specified by the Employer in Subsection 1.19(a) of the Adoption Agreement. For purposes of this Section 10.05, a withdrawal is made on account of hardship if made on account of an immediate and heavy financial need of caused by a qualifying financial hardship and the Participant where amount required to meet the need created by such Participant lacks other available resources. The Administrator hardship shall direct the Trustee be made in a uniform and nondiscriminatory manner with respect to hardship withdrawals and those withdrawals shall be based on the following special rules:
(a) The following are the only financial needs considered immediate and heavy:
(1) expenses incurred or necessary for medical care (that would be deductible under Code Section 213(d), determined without regard to whether the expenses exceed any applicable income limit) of the Participant, the Participant’s Spouse, children, or dependents, or a primary beneficiary of the Participant;
(2) costs directly related to the purchase (excluding mortgage payments) of a principal residence for the Participant;
(3) payment of tuition, related educational fees, and room and board for the next 12 months of post-secondary education for the Participant, the Participant’s Spouse, children or dependents (as defined in Code Section 152, without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) , or a primary beneficiary of the Participant;
(4) payments necessary to prevent the eviction of the Participant from, or a foreclosure on the mortgage on, the Participant’s principal residence;
(5) payments for funeral or burial expenses for the Participant’s deceased parent, Spouse, child, or dependent (as defined in Code Section 152, without regard to subsection (d)(1)(B) thereof) , or a primary beneficiary of the Participant;
(6) expenses for the repair of damage to the Participant’s principal residence that would qualify all Participants applying for a casualty loss deduction under Code Section 165 (determined without regard to whether the loss exceeds any applicable income limit); or
(7) any other financial need determined to be immediate and heavy under rules and regulations issued by the Secretary of the Treasury or his delegate; provided, however, that any such financial need shall constitute an immediate and heavy need distribution under this paragraph (7) no sooner than administratively practicable following the date such rule or regulation is issuedSection. For purposes of this Section, the term “primary beneficiary” "qualifying financial hardship" means a Beneficiary under financial hardship resulting from (i) the Plan who has an unconditional right to all unexpected expenses incurred in connection with the illness or a portion of the Participant’s Account upon the death of the Participant.
(b) A distribution shall be considered as necessary to satisfy an immediate and heavy financial need , the Participant's spouse, the children or grandchildren of either the Participant or the Participant's spouse, or the parents of either the Participant or the Participant's spouse, (ii) post-secondary school educational expenses for the coming semester incurred with respect to the Participant, the Participant's spouse or the Participant's dependents, for which purposes off-campus room and board expenses shall only if:
(1) The Participant has obtained all distributions, other than be allowable up to the hardship withdrawal, and all nontaxable (at the time of the loan) loans currently available under all plans maintained amount which would have been charged by the Employer educational institution (or, if the educational institution does not provide room and board, which would have been charged by a comparable educational institution offering room and board) had the student lived on-campus, or any Related Employer;
(2iii) The Participant suspends Deferral Contributions and Employee Contributions the expenses incurred in connection with purchasing, adding an addition to, or making structural modifications to the Plan for the 6-month period following receipt of his hardship withdrawal. The suspension must also apply to all elective contributions and employee contributions to all other qualified plans and non-qualified plans maintained by the Employer or any Related Employer, other than any mandatory employee contribution portion of a defined benefit plan, including stock option, stock purchase, and other similar plans, but not including health and welfare benefit plans (other than the cash or deferred arrangement portion of a cafeteria plan); and
(3) The withdrawal amount is not in excess of the amount of an immediate and heavy financial need (including amounts necessary to pay any Federal, state or local income taxes or penalties reasonably anticipated to result from the distribution)Participant's primary residence.
Appears in 1 contract
Samples: Employee Investment Plan and Trust Agreement (PHH Corp)
Hardship Withdrawals. If so provided by the Employer in Subsection 1.19(a1.18(a) of the Adoption Agreement, a Participant who continues in employment as an Employee may apply to the Administrator for a hardship withdrawal. Unless provided otherwise in the Service Agreement, the Participant may apply by certifying to the Administrator all withdrawal of the required criteria specified in this Section. Such certification shall represent that the Participant has documentation substantiating the hardship. Such a hardship withdrawal may include all or any portion of the Accounts specified by the Employer in Subsection 1.19(a)(1) of the Adoption Agreement and Section his Deferral Contributions Account (c) of the In-Service Withdrawals Addendum to the Adoption Agreement, if applicable, excluding any earnings on the Deferral Contributions Account thereon accrued after the later of December 31, 1988 or the last day of the last Plan Year ending before July 1, 1989) and, if so provided by the Employer in Subsection l.18(d)(2), such other Accounts as may be specified in Subsection (c) of the Protected In-Service Withdrawals Addendum to the Adoption Agreement. The minimum amount, if any, amount that a Participant may withdraw because of hardship is the dollar amount specified by the Employer in Subsection 1.19(a) of the Adoption Agreement$500. For purposes of this Section 10.05, a withdrawal is made on account of hardship if made on account of an immediate and heavy financial need of the Participant where such Participant lacks other available resources. The Administrator shall direct the Trustee Determinations with respect to hardship withdrawals shall be made by the Administrator and those withdrawals shall be conclusive for purposes of the Plan, and shall be based on the following special rules:
(a) The following are the only financial needs considered immediate and heavy:
(1) expenses incurred or necessary for medical care (that would be deductible under within the meaning of Code Section 213(d), determined without regard to whether the expenses exceed any applicable income limit) of the Participant, the Participant’s Spouse's spouse, children, or dependents, or a primary beneficiary of the Participant;
(2) costs directly related to the purchase (excluding mortgage payments) of a principal residence for the Participant;
(3) payment of tuition, related educational fees, and room and board for the next 12 months of post-secondary education for the Participant, the Participant’s Spouse's spouse, children or dependents (as defined in Code Section 152, without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) , or a primary beneficiary of the Participantdependents;
(4) payments necessary the need to prevent the eviction of the Participant from, or a foreclosure on the mortgage onof, the Participant’s 's principal residence;
(5) payments for funeral or burial expenses for the Participant’s deceased parent, Spouse, child, or dependent (as defined in Code Section 152, without regard to subsection (d)(1)(B) thereof) , or a primary beneficiary of the Participant;
(6) expenses for the repair of damage to the Participant’s principal residence that would qualify for a casualty loss deduction under Code Section 165 (determined without regard to whether the loss exceeds any applicable income limit); or
(75) any other financial need determined to be immediate and heavy under rules and regulations issued by the Secretary of the Treasury or his delegate; provided, however, that any such financial need shall constitute an immediate and heavy need under this paragraph (7) no sooner than administratively practicable following the date such rule or regulation is issued. For purposes of this Section, the term “primary beneficiary” means a Beneficiary under the Plan who has an unconditional right to all or a portion of the Participant’s Account upon the death of the Participant.
(b) A distribution shall be considered as necessary to satisfy an immediate and heavy financial need of the Participant only if:
(1) The Participant has obtained all distributions, other than the hardship withdrawal, and all nontaxable (at the time of the loan) loans currently available under all plans maintained by the Employer or any Related Employer;
(2) The Participant suspends Deferral Contributions and Employee Contributions to the Plan for the 612-month period following receipt the date of his hardship withdrawal. The suspension must also apply to all elective contributions and employee contributions to all other qualified plans and non-qualified plans maintained by the Employer or any Related Employer, other than any mandatory employee contribution portion of a defined benefit plan, including stock option, stock purchase, and other similar plans, but not including health and welfare benefit plans (other than the cash or deferred arrangement portion of a cafeteria plan); and;
(3) The withdrawal amount is not in excess of the amount of an immediate and heavy financial need (including amounts necessary to pay any Federal, state or local income taxes or penalties reasonably anticipated to result from the distribution); and
(4) The Participant agrees to limit Deferral Contributions (and "elective deferrals", as defined in Subsection 6.01(i)) to the Plan and any other qualified plan maintained by the Employer or a Related Employer for the calendar year immediately following the calendar year in which the Participant received the hardship withdrawal to the applicable limit under Code Section 402(g) for such calendar year less the amount of the Participant's Deferral Contributions (and elective deferrals") for the calendar year in which the Participant received the hardship withdrawal.
Appears in 1 contract
Samples: Retirement Plan Adoption Agreement (Hudson City Bancorp Inc)
