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.

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

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