In distinction, a remark been given prior to the issuance from the proposed restrictions noted problems confronted by system administrators as a result of lookback rule. The commentator famous, for example, that if a prepare presents for hardship distributions, the approach administrator need to evaluation its records to determine the value with the participant's Gains at time of any prior distribution. The commentator included that This may be significantly challenging and dear wherever designs sponsored by other companies have merged into the plan.

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The IRS and Treasury Notice that removing on the lookback rule is unlikely to existing considerable possibilities for individuals to evade the spousal-consent policies. In the situation of any plan topic to the spousal-consent provisions of sections 401(a)(11) and 417, a distribution that attracts a participant's accrued reap the benefits of a price earlier mentioned the cash-out limit to a worth at or underneath the cash-out limit will itself demand spousal consent.

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