What is a financial hardship?
The IRS Code specifies that distributions due to financial hardship are allowed only when there is an immediate and heavy financial need and the distribution is necessary to satisfy the financial need. The IRS has identified four situations that meet the criteria of an immediate and heavy financial need: • Uninsured medical expenses • Purchase of a primary residence • College tuition • To prevent eviction from or foreclosure on the individual’s primary residence. You must first exhaust all other means to meet the financial needs listed above, including taking a loan from your tax-sheltered annuity account.
