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I've been gone from my 401a employer since 2009. I'm

Customer Question
I've been gone from...

I've been gone from my 401a employer since 2009. I'm experiencing hardships, can i withdraw this money?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

I'm currently unemployed and will have no money for mortgage payments.

Accountant's Assistant: Is there anything else important you think the Accountant should know?

I've been unemployed for over a year and already had to use 401k and some county assistance.

Submitted: 7 months ago.Category: Finance
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Answered in 9 minutes by:
12/11/2017
Financial Professional: Lev, Tax Preparer replied 7 months ago
Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 33,140
Experience: Personal Investment, Tax Preparation
Verified

Some retirement plans may allow participants to withdraw from their retirement accounts because of a financial hardship, but these withdrawals must follow IRS guidelines.

Please be aware that the law ALLOWS plans to have hardship distribution provisions - but are not required to provide these...

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Financial Professional: Lev, Tax Preparer replied 7 months ago

If the plan provides for hardship distributions, it must provide the specific criteria used to make the determination of hardship. Thus, for example, a plan may provide that a distribution can be made only for medical or funeral expenses, but not for the purchase of a principal residence or for payment of tuition and education expenses. In determining the existence of a need and of the amount necessary to meet the need, the plan must specify and apply nondiscriminatory and objective standards.

So - your first step is to contact the plan administrator and verify what your specific plan documents are telling about hardship distribution and what conditions and supporting documents they will require.

Let me know if you need any clarification this matter.

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