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emc011075
emc011075, Tax adviser
Category: Tax
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Experience:  IRS licensed Enrolled Agent and tax instructor
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My company does not require proof of a 401k hardship withdrawl,

Customer Question

My company does not require proof of a 401k hardship withdrawl, will I need to prove it to the IRS at the end of the year?
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you.

No, you will not need any proof because hardship withdrawal or distribution doesn't qualify for any SPECIAL tax treatment. The distribution will be treated as regular distribution subject to income tax and when you are not 59 1/2 or older, the distribution will also be subject to 10% early distribution penalty, unless you qualify for a different penalty exception.

Here are IRS rules and tax treatment of a hardship distribution: http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Hardship-Distributions

Sorry if this is not the answer you were hoping for.

I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.

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