What: Through SECURE 2.0 changes, under certain circumstances, participants are now permitted to self-certify that they had an event that constitutes an unforeseeable emergency for purposes of an unforeseeable emergency distribution from the 457(b) plan
Action Required:
Key Dates: Effective for plan years beginning after 12/29/2022
Impacted Audiences: Participants utilizing funds from their 457(b) plan for deemed hardship/unforeseeable emergency distributions (this change may affect other plan types not offered by MERS)
For More Information: Click "Read More" below
Key Information:
Employer may rely on participant certifying that deemed hardship/ unforeseeable emergency distribution conditions are met
This change provides that, under certain circumstances, participants are permitted to self-certify that they had an event that constitutes an unforeseeable emergency for purposes of an unforeseeable emergency distribution from the 457(b) plan.
Plans are permitted to rely on the participant’s written self-certification that:
- The circumstances for the hardship exist
- The amount requested is not in excess of the amount
required to satisfy the financial need, and - The participant has no alternative reasonably available
means to satisfy such need
Reliance on self-certification is not permitted if the plan administrator has actual knowledge that is contrary to the
participant’s certification.
This change is effective for plan years beginning after 12/29/2022 and makes it easier for participants to use this provision.
More information: MERS SECURE 2.0 Resource Page