Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is a (financial) hardship withdrawal?

April 26, 2017financial hardship withdrawal

0

10 Posted

What is a (financial) hardship withdrawal?

2 Answers

0

10 Posted

Many plans allow you to withdraw money if you have a financial hardship. Generally, a financial hardship withdrawal is a type of withdrawal that is allowed by the IRS for six specific reasons. The purpose of this type of withdrawal is to alleviate financial difficulties when no other monetary resources are available. For this type of distribution, you may usually only withdraw as much as you have put into the plan (up to the amount of your immediate and heavy financial need). For most plans, any funds that the company has put into your account will not be available for withdrawal.

0

Posted

A hardship withdrawal is one that is made because of an immediate and heavy financial need that cannot be satisfied from other resources.