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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 17483
Experience:  B.A.; M.B.A.; J.D.
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I took out a hardship withdraw from my 401k to use to

Customer Question

I took out a hardship withdraw from my 401k to use to reinstate my mortgage , by the time I received my money my reinstatement amount has gone up and I couldn't pay it ever since then I have been working with my mortgage co. I was wondering what if any
trouble I can get into if I use my hardship for other reasons other then it was intended for
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  Phillips Esq. replied 1 year ago.
Hello: This isCustomer I am a licensed Attorney and I will be assisting you today.
I took out a hardship withdraw from my 401k to use to reinstate my mortgage , by the time I received my money my reinstatement amount has gone up and I couldn't pay it ever since then I have been working with my mortgage co. I was wondering what if any
trouble I can get into if I use my hardship for other reasons other then it was intended for

Response: None. You cannot put the money back or rolled it to an IRA or another qualified plan.. The withdrawal is included in your gross income (if this is not a ROTH IRA). So, you can use it anyway that you see fit if you can no longer use it to reinstate your mortgage as you originally intended.