Posts Tagged ‘401k withdrawl’

The rules of 401k hardship withdrawals

Posted December 10, 2008 by Bernz

Thinking about tapping your 401K to get through tough times? You may qualify for a hardship withdrawal if you meet certain conditions. And if you do qualify, you should expect to incur a substantial financial penalty PLUS a 10 percent early withdrawal penalty if you’re younger than 59 1/2.

These are the conditions that you or someone in your immediate family should meet.

cd_artHave outstanding and un-reimbursable medical expenses (excluding cosmetic surgery). You’ll need to supply a copy of your explanation of benefits (EOB) from your insurance company showing what part of your medical expenses are covered and which are not.

Prevention of eviction or foreclosure (on your primary residence). If you are facing eviction or foreclosure you can seek a hardship withdrawal to cover the outstanding expenses necessary to bring your account current. (more…)


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