I was laid off in May form my company. my 401k was placed into an account at heiwitt and I am now in need to request a payment due to hardship. Is there a way to waiver th 10% tax penalty?
The only exceptions to having to pay the 10% early withdrawal penalty for people under 59-1/2 years of age are:
• Distributions after your separation from service in or after the year you reached age 55 (age 50 for qualified public safety employees).
• Distributions made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from an employer, the payments must begin after separation from service) - this is known as a section 72(t) withdrawal
• Distributions due to total and permanent disability.
• Distributions due to death (you are the beneficiary of a deceased plan participant).
• You have unreimbursed medical expenses that are more than 7.5% of your adjusted gross income.
• Distributions to an alternate payee under a qualified domestic relations order.
• Distributions due to an IRS levy of the plan.
• Distributions to reservists while serving on active duty for at least 180 days.
Note that there is no excluson for "hardship" per se.
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