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    dws21396's Avatar
    dws21396 Posts: 10, Reputation: 1
    New Member
    		  
    #1

    Oct 26, 2006, 10:10 AM
    401(k) Hardship withdrawals
    I seem to be hearing a lot of radio commercials from folks who will show how to withdraw money from an IRA or 401(k) without a penalty as required by the IRS. How do these work?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Oct 26, 2006, 10:13 AM
    They don't. The allowable reasons for hardship withdrawals are very few and defined clearly under tax law. Unless one meets those those criteria a penalty is involved.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Oct 26, 2006, 07:40 PM
    In most 401Ks, you can borrow funds for virtually anything. You just have to pay it back.
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