Has Anyone Successfully Taken Out A 401K Hardship Loan?

Discussion in 'UPS Retirement Topics' started by NotUnion, May 12, 2015.

  1. NotUnion

    NotUnion New Member

    Hello,

    I had some questions about the hardship withdrawal process.

    If you successfully got a withdrawal, what information or paperwork did you have to provide to the 401K company?
    Was this process invasive?
    How much follow up was required?
    How long did it take for the approval? To get the money?

    Any advice would be helpful.
     
  2. brownmonster

    brownmonster Man of Great Wisdom

    Since you're not Union, which 401k are you asking about?
     
  3. They will only let you take a loan out for very few reasons.
     
  4. rod

    rod retired and happy

    No----buying more weed is not an emergency------at least not to them it isn't
     
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  5. NotUnion

    NotUnion New Member

    I'm opening a foster home but that nor medical bills for 'elective' infertility procedures are considered hardships.

    I work for UPS freight. We are non union but it's the UPS savings plan through Voya Financial
     
  6. If you log on to the plan website, they should have what is or isn't allowed.
     
  7. oldngray

    oldngray nowhere special

    I doubt infertility would qualify as a hardship but it won't hurt to ask.
     
  8. Just depends on the plans rules. The UPS/Teamsters 401k plan has very strict rules.
     
  9. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    By definition, one is not successful if they take out a 401k hardship loan.
     
  10. Sometimes life just happens. That should be your last resort, not your first.
     
  11. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Are we talking about a loan, which has to be repaid, or a withdrawal, which does not and would be considered income for tax purpose?

    I have taken out 8 loans to pay my portion of our children's college expenses. The paperwork required was minimal-----all I had to submit with the application was a bill from the school.

    I would imagine the bill for a hardship loan or withdrawal would be much more comprehensive.

    I would also imagine that fertility treatments would not be considered a hardship. (pun intended)
     
  12. govols019

    govols019 You smell that?

    If you take a loan for education you must take it at the beginning of the term...they will not approve a loan that is for past classes.
     
  13. olroadbeech

    olroadbeech Happy Verified UPSer

    probably not for your reason. maybe a bank loan or kickstarter or fundme. otherwise you would have to cash out 401k and pay penalties and taxes.
     
  14. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    You want the OP to set up a GoFundMe page for fertility treatments? Really??
     
  15. UPS4Life

    UPS4Life Active Member

    Cmon now you know people start a gofundme for anything anymore. I often wondered if I started one and asked people to donate 1$ how much money I would make.
    Got the idea from a couple years back I got a check from ebay for $.69, yes 69 cents I laughed and threw it out. If they had to pay out 5 million dollars and 3/4 of the people laughed and threw it out because it was under a buck or two they just made a boat load of money.... Or didn't lose it.
     
  16. Elvis

    Elvis New Member

    As I recall, you can only get a loan for up to 50% of your account with a $50,000 max. You pay yourself 4% interest, but if you lose your job you must pay it back within 90 days or pay income tax plus 10% on the balance. You must pay back within 5 years, or 20 years for a home. Big penalties if you don't.
     
  17. ManInBrown

    ManInBrown Well-Known Member

    I know back in the day pre 2008 before the economy crashed, you could take a hardship and lie and say it was for one of the approved reasons and you didn't have to show proof. They just took your word for it. After the economy crashed they required you show the proof for the reason you say.
     
  18. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Not true----they have always asked for proof. Whether they were as vigilant back then or not may be debatable.

    Nice try----thanks for playing.
     
  19. ManInBrown

    ManInBrown Well-Known Member

    I was not working at UPS. Previous employer 401k
     
  20. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    Our 401k used to be run by State Street out of Boston and they were just as vigilant as Prudential.