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    jennyl147's Avatar
    jennyl147 Posts: 2, Reputation: 1
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    #1

    May 11, 2009, 05:30 PM
    Early withdrawal from 401k
    My husband recently quit his job to go back to school. Now we are living off my income only w/a little help from family.

    Can I pull from my 401k at my work as a hardship withdrawal? To help with living expenses so we don't have to borrow money from the bank again!
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    May 11, 2009, 06:21 PM

    Considering the cost of withdrawing early, it would probably be cheaper to borrow the money. Have you looked into taking a loan out against the money?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #3

    May 12, 2009, 07:56 AM

    The hardship withdrawal would have to be to pay for your husband's education, not just general liuving expenses. But I agree with ScottGem - it would be a better deal if your plan allows you to take a loan against your account, rather than making a withdrawal. Withdrawals are subject to income tax as well as the 10% early withdrawal penalty (even if it is classified as a "hardship" withdrawal). Talk to your plan administrator to see if your plan has a loan provision.
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