dmertz
Level 15

Retirement tax questions

Regarding increasing 401(k) deferrals, I think it used to be that deferrals had to stop for a period of time if a hardship distribution was made, but I think the tax code was changed sometime in the past few years to allow deferrals to continue [Edit: Or maybe I'm just thinking of a common feature of 401(k) plan agreements].  Still, the plan agreement would dictate.