The Hartford 2008 Annual Report Download - page 788

(B) Bona Fide Financial Hardship and Immediate and Heavy Financial Need Required. A hardship withdrawal
will not be permitted unless the Member establishes to the satisfaction of the Hardship Committee that a bona fide
financial hardship exists. For this purpose, a bona fide financial hardship means an immediate and heavy need to draw
on financial resources not reasonably available from other sources of the Member. Bona fide financial hardships shall
include (i) cash down payments and/or closing costs associated with the purchase of a Member’s principal residence,
(ii) medical expenses for a Member, spouse or dependents, (iii) expenses necessary for such persons to obtain medical
care that are not paid or reimbursed by insurance, (iv) room and board expenses, tuition expenses and related
educational fees for post-secondary education for such persons for the next academic year, (v) payments to prevent the
eviction of a Member from his or her principal residence or the foreclosure of a mortgage on such residence, (vi) burial
or funeral expenses for a Member’s parent, spouse, child or dependent, and (vii) expenses to repair damage to a
Member’s principal residence, which would qualify for a casualty deduction under IRS rules without regard to the
amount of the loss as a percentage of the Member’s income (collectively, “Safe Harbor Hardships”). Bona fide
financial hardship shall also include any other reasons deemed appropriate by the Hardship Committee (“Non-Safe
Harbor Hardships”). In order to receive a withdrawal for a Non-Safe Harbor Hardship, a Member must demonstrate
lack of other reasonably available financial resources by disclosing details of his or her personal and family finances. In
order to receive a withdrawal for a Safe Harbor Hardship, a Member must agree to suspend all Before-Tax Savings,
Roth 401(k) Savings, After-Tax Savings, Before-Tax Catch-Up Savings and Roth 401(k) Catch-Up Savings for a six
month period as described in Article Four. The Hardship Committee shall make determinations of financial hardship in
a uniform and nondiscriminatory manner, with reference to all the relevant facts and circumstances and in accordance
with applicable tax law under Code Section 401(k).
(C) Withdrawal Limited to Financial Need (Plus Taxes) . The amount of a hardship withdrawal cannot exceed the
amount of the immediate and heavy financial need demonstrated by the Member (plus applicable taxes on the
withdrawal). For this purpose, loans and amounts withdrawn from other Accounts will be considered.
(D) All Available Loans and Distributions must be Taken First . A hardship withdrawal will not be permitted unless
the Member has obtained (i) all distributions (other than hardship distributions) available under all other retirement
plans (including this Plan) maintained by the Company, including, effective November 29, 2001, distribution of all
cash dividends currently available to the Member under Section 7.6 of this Plan and (ii) all non-taxable loans available
under all retirement plans maintained by the Company, including this Plan, provided that making the payments on such
loans does not result in a financial hardship for the Member.
10.3 Penalty for Making Withdrawals from Certain Accounts . Matching Company Contributions under Article 5 will be
suspended for three months after the applicable Withdrawal Valuation Date for any Member who has not reached age 59 1/2
and who makes a non-hardship or hardship withdrawal of any amount from his or her Basic After-Tax Investment Account,
or any amount of Vested Matching Company Contributions from his or her Company Contribution Account.
- 47 -
Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009