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- Waiting Period
A period of time that an individual must wait either after becoming employed or submitting an application for a health care plan before the coverage becomes effective and claims may be paid. Premiums are not collected during this period.
- Withdrawals
Prior to normal payout (usually at retirement), DC Plan participants may be allowed to withdraw all or a portion of the employer funds from their accounts. Although most early withdrawals incur tax penalties, Hardship Withdrawals do not. To avoid tax penalties, many plans have loan provisions that allow employees to borrow from their accounts, with interest, for a specified period.