I am 30 yrs. Old and working. I am 100% vested in my 401(k) and have had the product for 9 or 10 years. I need to take the money out of the fund and use it for other purposes. There isn't a lot of money in the account (about 5500), and I took out a loan a little over a year ago on it and still owe about 1200 on the loan. So, that would leave me with about 4300 before the 20% fed tax and the 10% penalty. I do realize that I'll take a big hit on those and that is all right with me because I really need the money.
I called the Plan Admin./(schwab) and asked about withdrawing the money. They told me that I can't withdraw the money or close the account. The guy I spoke with said that I could only access the money one of two ways: 1. If I could show hardship (in the form of an eviction notice or a foreclosure) which would make me eligible for about 2900 or 2. if I could show disability, which would make me eligible for about 4300.
My house was already foreclosed on, and with two children, I was forced to move in with my mother, who I'm sure is not going to give me an eviction notice and I am not disabled.
This is MY money (I thought), can they refuse to give it to me? As well, why does the amount I'm entitled to differ with the reason I Need it. Can some one please inform me of my options? Thanks.

Jim