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-   -   401k Hardship Withdrawal (https://www.askmehelpdesk.com/showthread.php?t=754410)

  • Jun 19, 2013, 02:13 AM
    laurapalpallato
    401k Hardship Withdrawal
    Can I do a hardship withdrawal on funds provided by employer for 401k my funds are exhausted
  • Jun 19, 2013, 03:18 AM
    ScottGem
    You may qualify for a hardship withdrawal. However, you would still be subject to withholding and a 10% penalty. Talk to your plan admin
  • Jun 19, 2013, 06:20 AM
    ebaines
    Remember too that the definition of "hardship" for the purposes of a 401(k) withdrawal by an active employee is limited to the following reasons:

    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; and
    6. Certain expenses relating to the repair of damage to the employee's principal residence

    Note that being "low on funds" - perhaps having high credit card debt, being late on bills etc - does not automatically qualify as "hardship."

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