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News > QOTW: QBADS 2023




Sponsored by MFS Investment Management


This week we asked plan sponsors if they have adopted the provision in SECURE 1.0 passed in 2019 that allows for a penalty-free distribution within one year of a birth or adoption of a child (QBAD provision). We first asked this question in 2021 at a member’s request as they were deciding whether or not to offer it. At that time, 20 percent of plans were adopting this provision with 22 percent unsure/considering and 58 percent not looking to adopt it. It seems that a large percent of those considering it decided against it as three-quarters have not and are not considering adopting the QBAD provision.



  • Just one of many options/decisions during the busy first quarter, we will get around to it.
  • Our company feels that we are helping participants save for retirement, so we limit the number of hardship withdrawals.
  • Our philosophy is to encourage participants to leave their money in the plan until retirement, so we limit withdrawals as much as we can.
  • Scheduled to adopt this one in April
  • The option has aligned with our company’s philosophy of supporting employees and their families.
  • We are gathering more information on this to determine if it is something we are interested in adopting.
  • We are still considering and may adopt once more clarification is provided.