Expert: Allen - 9/11/2006

Question
HI, IS THERE ANYTHING (LAW, IRS PROVISION) THAT ALLOWS OR PROVIDES FOR A CASH PAYOUT (EARILY) ON A NON-CONTRIBUTORY PENSION PLAN DUE TO A HARDSHIP ? I HAVE PARKINSONS DISEASE, REQUIRE HIP REPLACEMENT SURGERY AND SURGERY TO CLOSE A HOLE IN THE TOP CHAMBER OF MY HEART. PLUS I OWE 4,000 IN MEDICAL TESTS THAT MY INSURANCE WILL NOT PAY.
I COLLECT SS DISABILITY AS MY ONLY INCOME. THANKS.

Answer
The law allows a plan to permit distributions in the event of hardship. The law also allows a plan to make distributions in the event of permanent disability. However neither provision is mandatory. I would check with the plan administrator to see if your plan has either of these provisions. You can also look at the Summary Plan Description which should have been provided to you when you became a participant.