What does the IRS consider as a hardship?
The following are considered “hardships” by the IRS: • Medical expenses described under Code §213(d) incurred or anticipated to be incurred by the employee, the employee’s spouse or dependent. This is for all deductible medical expenses – not just the amounts that actually exceed 7.5% of adjusted gross income. • Purchase (excluding mortgage payments) of a principal residence of the employee. • Tuition and related educational fees for the next 12 months for post-secondary education for the employee, spouse, children or dependents. • Payment to prevent eviction from the employee’s primary residence or foreclosure on the mortgage on the employee’s primary residence. • Funeral expenses of a parent, spouse, child or dependent. • Certain expenses related to the repair of damage to the participant’s principal residence that would qualify for a casualty deduction on the individual’s Federal Income Tax Return under Section 165 of the Internal Revenue Code. For example, this would include expens
The following are considered “hardships” by the IRS: • Medical expenses described under Code §213(d) incurred or anticipated to be incurred by the employee, the employee’s spouse or dependent. This is for all deductible medical expenses — not just the amounts that actually exceed 7.5% of adjusted gross income. • Purchase (excluding mortgage payments) of a principal residence of the employee. • Tuition and related educational fees for the next 12 months for post-secondary education for the employee, spouse, children or dependents. • Payment to prevent eviction from the employee’s primary residence or foreclosure on the mortgage on the employee’s primary residence. • Funeral expenses of a parent, spouse, child or dependent. • Certain expenses related to the repair of damage to the participant’s principal residence that would qualify for a casualty deduction on the individual’s Federal Income Tax Return under Section 165 of the Internal Revenue Code. For example, this would include expens
