What are the tax consequences taking a Hardship Distribution?
I’ve terminated employment and would like to receive a distribution of my 401(k) assets. What steps do I need to take, and what are my options? The timing of distribution varies considerably by employer due to the differences in the timing of match and profit sharing contributions; therefore, you will need to contact your employer or NAPS, LLC to determine the earliest date of distribution. No distributions can take place prior to the deposit of your last 401(k) deferral contribution. In order to request a distribution, you will need to complete a Plan Distribution Request Package and return it to NAPS, LLC for processing. Upon receipt of your completed and approved request, NAPS, LLC will process your distribution within one to three weeks. The most common distribution option is a Rollover to a Self-Directed Individual Retirement Account (IRA) or to your new employer’s 401(k) plan. A Cash Distribution is also available, in which your funds are simply cashed out and paid directly to yo
