Hardship Distribution

Hardship Distribution means:
a distribution from a Section 401(k) plan that is made because of the distributee's immediate and heavy financial need and does not exceed the amount necessary to satisfy this need (e.g., medical expenses, postsecondary tuition, or avoidance of eviction from or foreclosure of a principal residence). The employee who receives a hardship distribution is prohibited from making contributions to the plan for at least 12 months after the distribution, and this distribution is includable in the employee's income like any other allowable distribution.