HARDSHIP WITHDRAWAL RULES FOR 403(b) PLANS.

SEC. 602. HARDSHIP WITHDRAWAL RULES FOR 403(b) PLANS.(a) In General.—Section 403(b), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph:“(17) Special rules relating to hardship withdrawals.—For purposes of paragraphs (7) and (11)—“(A) Amounts which may be withdrawn.—The following amounts may be distributed upon hardship of the employee:“(i) Contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)). “(ii) Qualified nonelective contributions (as defined in section 401(m)(4)(C)). “(iii) Qualified matching contributions described in section 401(k)(3)(D)(ii)(I). “(iv) Earnings on any contributions described in clause (i), (ii), or (iii). “(B) No requirement to take available loan.—A distribution shall not be treated as failing to be made upon the hardship of an employee solely because the employee does not take any available loan under the plan.” . (b) Conforming Amendments.—(1) Section 403(b)(7)(A)(i)(V) is amended by striking “in the case of contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D))” and inserting “subject to the provisions of paragraph (17)”. (2) Paragraph (11) of section 403(b), as amended by this Act, is further amended—(A) by striking “in” in subparagraph (B) and inserting “subject to the provisions of paragraph (17), in”, and (B) by striking the second sentence. (c) Effective Date.—The amendments made by this section shall apply to plan years beginning after December 31, 2023.