Does the 10 percent early withdrawal penalty apply if my withdrawal is for hardship purposes?
Probably. If you withdraw pre-tax money from your account before age 59½, you may owe a 10 percent early withdrawal penalty depending on your circumstances. • When do I have to start taking money from my 401(k) plan account? Generally, you must begin to take distributions no later than April 1 of the year following the year in which you turn age 70½ or the year in which you retire, whichever is later. Your plan may have additional requirements. • What happens to my account if I should die? If you die during your working years, your plan account is payable to a beneficiary designated by you. Your beneficiary would receive rights to your account balance, and could decide what to do with it, within plan guidelines. It is vital that you have designated your account beneficiaries. If you are married, your spouse is automatically designated as your beneficiary. If you wish to have someone other than your spouse deemed as beneficiary, your spouse must sign (in the presence of a Notary Public
