Distributions Due to an IRS Levy

The 10% additional tax on early withdrawals from IRAs or qualified employer plans will not apply to distributions that result from an IRS levy against the IRA or plan. For more information on the additional tax on early withdrawals, see Publication 590, Individual Retirement Arrangements (IRAs) (Including Roth IRAs and Education IRAs), or Publication 575, Pension and Annuity Income.

Hardship Distributions

Hardship distributions from 401(k) plans and 403(b) plans made after 1998 are not eligible rollover distributions. They cannot be rolled over into a traditional IRA. For more information on traditional IRAs, see Publication 590.

Discrimination Safe Harbor

Beginning in 1999, a 401(k) plan does not have to pass the special nondiscrimination tests that apply to elective deferrals and matching contributions if its participants receive a certain level of matching or nonelective contributions. For more information, see Notice 98-52.

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