[laurapalpallato]

Can I do a hardship withdrawal on funds provided by employer for 401k my funds are exhausted

[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

[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."