Has Anyone Successfully Taken Out A 401K Hardship Loan?

[NotUnion]

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.

 

[brownmonster]

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.

Since you're not Union, which 401k are you asking about?

 

[IVE GOTTA PACKAGE 4U]

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.

They will only let you take a loan out for very few reasons.

 

[rod]

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

 

[NotUnion]

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.

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

 

[IVE GOTTA PACKAGE 4U]

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

If you log on to the plan website, they should have what is or isn't allowed.

 

[oldngray]

I doubt infertility would qualify as a hardship but it won't hurt to ask.

 

[IVE GOTTA PACKAGE 4U]

I doubt infertility would qualify as a hardship but it won't hurt to ask.

Just depends on the plans rules. The UPS/Teamsters 401k plan has very strict rules.

 

[Catatonic]

By definition, one is not successful if they take out a 401k hardship loan.

 

[IVE GOTTA PACKAGE 4U]

By definition, one is not successful if they take out a 401k hardship loan.

Sometimes life just happens. That should be your last resort, not your first.

 

[UpstateNYUPSer(Ret)]

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)

 

[govols019]

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.

 

[olroadbeech]

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.

 

[UpstateNYUPSer(Ret)]

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.

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

 

[UPS4Life]

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

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.

 

[Elvis]

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.

 

[ManInBrown]

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.

 

[UpstateNYUPSer(Ret)]

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.

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.

 

[ManInBrown]

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.

I was not working at UPS. Previous employer 401k

 

[UpstateNYUPSer(Ret)]

I was not working at UPS. Previous employer 401k

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