401k plan

[lydia33]

Can an employer set up a 401k plan where the only way to get your money out of it is to quit or retire? The only hardship clause I see it the write-up of their plan is permanent disability.

[jainen]

>>the write-up of their plan<<

The actual plan document, not just a "write up," must be made available to the employees. Ask to see it, along with the IRS determination letter that approved it. I guess the plan can prohibit hardship distributions, but it would be a very odd provision to include in what is supposed to be a benefit package. Besides upsetting the employees, it would require a customized plan which would be more expensive to draft and have a much higher chance of failing to qualify.