Check the Summary Plan Description under My Documents to see if your 401(k) plan allows hardship withdrawals or distributions.
Hardship withdrawals cannot be repaid and are subject to income taxes and any early withdrawal tax penalties.
Generally, hardship withdrawals are only allowed if you have an “immediate and heavy” financial need that cannot be fulfilled by any other reasonably available assets, including liquid investments, savings, and other types of 401(k) distributions.
If your 401(k) plan allows hardship withdrawals, follow the below instructions.
Instructions to take a Hardship Withdrawal from your account:
If your 401(k) allows hardship withdrawals, you may take a hardship withdrawal if you meet the following requirements:
You have an “immediate and heavy” financial need that cannot be fulfilled by any other reasonably available assets, including liquid investments and savings.
You aren't eligible to take other types of distributions from your 401(k) plan, such as an in-service distribution if you are age 59 ½ or older.
The minimum amount you can request is $1,000 in most cases, refer to your plan's Summary Plan Description to find your 401(k)'s specific rules.
The maximum amount you can request may not be more than the amount needed to relieve your applicable financial need, plus any required taxes and fees.
Some plans have a maximum number of hardship withdrawals allowed per year, refer to your plan's Summary Plan Description to find your 401(k)'s specific rules.
Your applicable financial need falls under one of the following circumstances:
Unreimbursed Medical Expenses: medical expenses for the employee or the employee’s spouse, dependents, or beneficiary that are not covered by insurance.
Prevention of Eviction or Foreclosure: payments necessary to prevent eviction or foreclosure of the employee from the employee’s principal residence.
Education Expenses: tuition, educational fees, or room and board for the next 12 months of postsecondary education of the employee or the employee’s spouse, dependents, or beneficiary.
Funeral Expenses: funeral expenses for the employee or the employee’s spouse, dependents, or beneficiary.
Purchase of Principal Residence: costs directly related to purchase of the employee’s principal residence excluding mortgage payments.
Repair of Principal Residence: certain expenses to repair damage to the employee’s principal residence.
Federally Declared Emergency: Costs directly related to losses from a federally declared emergency at your primary residence or place of work.
If you meet the above requirements, complete the hardship-form.pdf and email to [email protected]
Once your form has been received, you'll receive a confirmation email and your loan will go through the review process.
Once the review is complete, your plan's Trustee or Administrator will be sent the form to Docusign.
Your hardship withdrawal will be issued about 1 week after the form has been Docusigned by your plan's Trustee or Administrator.
You will receive a 1099-R for the year the hardship distribution took place.
Important notes
Please ensure you include all the information the form asks.
Please note, there may be delays in processing if specific information is not included or if any information is incorrect or incomplete. In cases where information is incorrect or incomplete, it may be returned to you.
Processing typically takes about 2 weeks, though these timelines can vary.
Please contact [email protected] if there's an issue or you have any questions