Hardship Distribution Overview
If CCC is the Third Party Administrator for your 403(b) plan, CCC is required to review and, if appropriate, approve any Hardship Distribution request. Please complete the CCC Hardship Distribution Request Form and Information Supplement and review all included information. The CCC Hardship Distribution Request Form must be submitted along with your vendor's Hardship, copies of the documented hardship expenses and your most recent account statement to CCC for review and, if appropriate, plan administrative approval of your Hardship Distribution Request.
Hardship Distributions are only allowed under very specific circumstances per IRS rules, these include:
- Certain medical expenses considered deductible under IRS Code Section 213(d)
- Costs relating to the purchase of a principal residence
- Tuition and related educational fees and expenses
- Payments necessary to prevent eviction from, or foreclosure on, your principal residence
- Burial or funeral expenses
- Expenses for certain damages to your principal residence resulting from a deductible casualty loss as described in IRS Publication 547
The documentation of the hardship expenses must be consistent with the acceptable hardship circumstances listed above and should meet the documentation described in the CCC Hardship Distribution Request Form and Information Supplement. Please note that CCC can only approve Hardship Distribution Requests in the amount consistent with the documentation of expenses provided.
There additional rules and restrictions that apply to Hardship Distributions. Hardships Distributions are subject to availability under your employer's 403(b) Plan and under the investment contract. Hardship Distributions are only available from the participants elective deferrals, hardships are not available from employer contributions to the 403(b) account. Participants who are eligible for loans from their account must take a loan rather than a hardship unless doing so is counterproductive. If any other form of distribution (other than Hardship) is available to the participant under any retirement plans maintained by the employer, that distribution must be exhausted before requesting a Hardship Distribution. Please review the CCC Hardship Distribution Request Form and Information Supplement for additional details and restrictions.
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