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View Full Version : Early withdrawal from 401k


jennyl147
May 11, 2009, 05:30 PM
My husband recently quit his job to go back to school. Now we are living off my income only w/a little help from family.

Can I pull from my 401k at my work as a hardship withdrawal? To help with living expenses so we don't have to borrow money from the bank again!

ScottGem
May 11, 2009, 06:21 PM
Considering the cost of withdrawing early, it would probably be cheaper to borrow the money. Have you looked into taking a loan out against the money?

ebaines
May 12, 2009, 07:56 AM
The hardship withdrawal would have to be to pay for your husband's education, not just general liuving expenses. But I agree with ScottGem - it would be a better deal if your plan allows you to take a loan against your account, rather than making a withdrawal. Withdrawals are subject to income tax as well as the 10% early withdrawal penalty (even if it is classified as a "hardship" withdrawal). Talk to your plan administrator to see if your plan has a loan provision.