I have a 401k at work. It only has $1,100 in it and has been idle for a few years. I wanted to get a hardship loan to fix my vehicle but my employer tells me I do not qualify for financial need that my vehicle is personal. Im not putting new flashy rims on it my tranny is going out and I have a child support garnishment compliments of my divorce and barely bring home a little more than $200 weekly. I can't get a loan from an outside institution such as bank or credit union, loan company etc... because of this garnishment . How is being evicted from a rental property or buying a new home quallify but the only means I have to and from my job not a need? Where can I get help or information because I thought from everything I have read on line I qualify because of the garnishment...

The IRS limits the definition of "hardship" that qualifies for withdrawal from the 401(k) for active employees to the following:

1. Expenses for medical care previously incurred by the employee, the employee's spouse, or any dependents of the employee or necessary for these persons to obtain medical care;
2. Costs directly related to the purchase of a principal residence for the employee (excluding mortgage payments);
3. Payment of tuition, related educational fees, and room and board expenses, for the next 12 months of postsecondary education for the employee, or the employee's spouse, children, or dependents;
4. Payments necessary to prevent the eviction of the employee from the employee's principal residence or foreclosure on the mortgage on that residence;
5. Funeral expenses; or
6. Certain expenses relating to the repair of damage to the employee's principal residence.

Repair of your car does not qualify.

One possible option would be to take a loan against your 401(k) balance. Most plans allow you to tale out a loan of up to 50% of the balance, and then you pay it back through payroll deduction over the next year or two. The nice thing about this is that there are no penalties or taxes due, and the interest you pay is being paid to yourself.