| If you are still employed at the company where your 401(k) is located, talk to your plan admin about taking out a loan from your 401(k). Most plans allow you to take out a loan for a period of 2 or 3 years of up to 50% of the amount you've contributed over the years, as long as you are still working. Taking a loan can satisfy a short-term need for cash, without triggering any taxes or penalties. Unfortunately your husband is not allowed to take a loan against his 401(k), as he is no longer employed. I would urge you to NOT take an outright distribution from either plan - if you are under 59-1/2 years of age or your husband under age 55 taking a distribution will trigger both income tax and a 10% penalty. The hardship allowance that Fr_Chuck speaks of simply means that the plan must allow you to take a withdrawal if you meet one of the criteria, but making a hardship withdrawal does NOT eliminate the 10% penalty. If you do not meet any of the hardship withdrawal criteria, it is possible that the plan could refuse to allow you to take a withdrawal - but all plans are unique, so you need to ask what the rules are. The criteria for hardship withdrawal are:
1. Un-reimbursed medical expenses for you, your spouse, or dependents.
2. Purchase of an employee's principal residence.
3. Payment of college tuition and related educational costs such as room and board for the next 12 months for you, your spouse, dependents, or children who are no longer dependents.
4. Payments necessary to prevent eviction of you from your home, or foreclosure on the mortgage of your principal residence.
5. Funeral expenses
6. Repair of a primary residence. | 
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