Exempt Magazine

News:

Hardship Withdrawals From 403(b) Plans Minimal

By Paul Clolery

Nonprofits are adding automatic enrollment to their 403(b) pension plans, with the largest plans having the largest year-over-year participation jump. And, while 74.7 percent of plans permit hardship withdrawals, that happened in only 1.6 percent of participants during 2010.

Those are among the findings of The Profit Sharing/401k Council of America’s 2011 403(b) Plan Survey, sponsoredby the Principal Financial Group in Des Moines, Iowa. Data is gathered from arts/cultural, association, foundation, healthcare (other than hospitals), higher education, hospitals and hospital systems, K-12 education, library/museum, other education, religious institutions (churches), research/science/environmental and social services.