I have a few questions about the prior 60-day rollover period and the new extended rollover periods for plan loan offsets effective for tax years after 12/31/17. Let's say the loan procedures provide that a loan is due and payable in full within 90 days of termination of employment or it is offset. Participant under age 59-1/2 terminates 1/2/2018 with an outstanding loan that's not in default. Loan is not repaid in full by 4/2/2018 and the participant has left their money in the plan. The loan is technically supposed to be offset on 4/2/2018. But the TPA/record keeper does not offset the loan in their system until the end of 2018 and a 1099-R is issued to the participant in late January 2019. Under the prior 60-day rule, when should the participant have "rolled over" the loan offset by making a contribution to an IRA or another employer plan to avoid adverse tax consequences? Is it within 60 days of 4/2/2018, 60 days from the end of 2018 when the TPA offset in their system, or 60 days from receipt of the 1099-R? I believe it is within 60 days of 4/2/2018 unless the participant wants to submit a PLR requesting extension of time until receipt of 1099-R because they were unaware that loan was offset... which is one of the benefits of having the new extended period. Under the new rules, participant would have until the due date of their tax return (4/15/19), plus extensions, correct?

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Would a participant be able to claim a hardship to pay for medical insurance? The SPD says: "The Plan does allow for hardship distributions for the following qualifying expenses: ... Expenses for medical care (described in Section 213(d) of the Internal Revenue Code) for you, your spouse or your dependents." IRC Section 213(d)(1)(D) says: "(D) for insurance (including amounts paid as premiums under part B of title XVIII of the Social Security Act, relating to supplementary medical insurance for the aged) covering medical care referred to in subparagraphs (A) and (B) or for any qualified long-term care insurance contract (as defined in section 7702B(b)). In the case of a qualified long-term care insurance contract (as defined in section 7702B(b)), only eligible long-term care premiums (as defined in paragraph (10)) shall be taken into account under subparagraph (D)." This seems to suggest that a participant can request a hardship for insurance premiums.

Participant is going through a divorce. Plan administrator has been contacted by the spouse's attorney regarding information on the participant's 403(b) account. Currently, there is no QDRO, although it's likely that one is coming. Participant claims she needs to take a hardship distribution from the plan. Is that permitted when the plan administrator knows that the participant's spouse may be entitled to a share of the account due to a potential QDRO?