If a participant suffers an unforeseeable emergency, the participant may request an immediate distribution of all or part of the participant's deferrals. The request must be made through an application to the third-party administrator. If the third-party administrator approves the request, the distribution must be made to the extent necessary to satisfy the need, including the payment of federal income tax withholding, if necessary. If the third-party administrator denies the request, the participant may appeal the denial by giving notice of an intention to appeal within thirty days after the date of the notice of denial. No distribution may be made to the extent that the unforeseeable emergency may be relieved: (1) Through reimbursement or compensation by insurance or otherwise; (2) By liquidation of the participant's assets to the extent that the liquidation does not cause severe financial hardship; or (3) By discontinuation of deferrals under the plan. The need to send a participant's child to college, divorce proceedings, or the desire to purchase a home are not considered to be unforeseeable emergencies. Any amount that is distributed on account of an unforeseeable emergency is not an eligible rollover distribution, and the participant may not elect to have any portion of the distribution paid directly to an eligible retirement plan. The provisions of this section do not apply if a distribution is made pursuant to § 3-13-83 .
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