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View Full Version : Can I get in legal trouble for falsifying papers for a hardship 401k withdrawal


joeyo2000
Feb 15, 2011, 10:18 PM

ScottGem
Feb 16, 2011, 04:51 AM
Possibly, it depends on the rules of your 401(k). If your plan ONLY permits a withdrawal if it's a hardship, then your company could consider that you are untrustworthy and terminate you.

Did you actually do this or just thinking of it?

Generally a hardship still doesn't change your tax liability or forego the 10% penalty. It just allows the plan to allow the withdrawal.

Fr_Chuck
Feb 16, 2011, 05:38 AM
Yes, it is fraud, and is a form of cheating on your taxes and a IRS violation.

If caught there can be additional fines and penalties given

excon
Feb 16, 2011, 06:17 AM
Hello j:

Anytime you're "falsifying" something, somebody is about to be tricked. They're NOT going to like it very much, and if you did it to ME, you betcha you'd be in trouble. I don't LIKE to be cheated. Do you??

excon