Distribution Necessary Clause Samples

Distribution Necessary. A distribution will not be treated as necessary to satisfy an immediate and heavy financial need of an employee to the extent the amount of the distribution is in excess of the amount required to relieve the financial need or to the extent such need may be satisfied from other resources that are reasonably available to the employee. This determination generally is to be made by the Plan Administrator on the basis of all relevant facts and circumstances. A distribution generally may be treated as necessary to satisfy a financial need if the Plan Administrator reasonably relies upon the Participant's representation that the need cannot be relieved: (A) through reimbursement or compensation by insurance or otherwise, (B) by reasonable liquidation of the Participant's assets, to the extent such liquidation would not itself cause an immediate and heavy financial need, (C) by cessation of Participant's Deferral Contributions under the Plan, or (D) by other distributions or nontaxable (at the time of the loan) loans to the Participant from plans maintained by the Employer or by any other employer, or by borrowing from commercial sources on reasonable commercial terms. For purposes of the foregoing, the Participant's resources shall be deemed to include those assets of his Spouse end minor children that are reasonably available to the Participant. However, property held for the Participant's child under an irrevocable trust or under the Uniform Transfers to Minors Act (or any similar or successor law which is applicable to the Participant) will not be treated as a resource of the Participant.