The Budget Act of 2018, signed into law on February 9, 2018, provides individuals with 401K retirement plans relaxed hardship restrictions. The new relaxed restrictions include: (i) Rescission of the IRS rule that prohibits a participant from making an elective 401(k) deferral for six months after taking a hardship withdrawal; (ii) Allowing plan participants to take a hardship withdrawal from funds attributable to qualified non-elective contributions or qualified matching contributions made by employers under a safe harbor plan; and (iii) Allowing a hardship withdrawal to include not only the actual amount of elective 401(k) deferrals made but the earnings on those contributions. The changes are effective for plan years beginning after December 31, 2018.