Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe UPS Forum
UPS Discussions
401k allows only hardship loans?
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="AmYisroelChai" data-source="post: 218422" data-attributes="member: 10496"><p><a href="http://www.irs.gov/taxtopics/tc424.html" target="_blank">http://www.irs.gov/taxtopics/tc424.html</a></p><p> </p><p>Many 401(k) plans allow employees to make a hardship withdrawal because of <strong><em><u>immediate and heavy financial needs</u></em></strong>. Generally, hardship distributions from a 401(k) plan are limited to the amount of the employee's elective deferrals only, and do not include any income earned on the deferred amounts.</p><p> </p><p><a href="http://www.guideto401khardships.com/" target="_blank"><u>http://www.guideto401khardships.com/</u></a></p><p> </p><p></p><p>The following four items are considered by the IRS as acceptable reasons for a hardship withdrawal: <ol> <li data-xf-list-type="ol">Un-reimbursed medical expenses for you, your spouse, or dependents.</li> <li data-xf-list-type="ol">Purchase of an employee's principal residence.</li> <li data-xf-list-type="ol">Payment of college tuition and related educational costs such as room and board for the next 12 months for you, your spouse, dependents, or children who are no longer dependents.</li> <li data-xf-list-type="ol">Payments necessary to prevent eviction of you from your home, or foreclosure on the mortgage of your principal residence.</li> <li data-xf-list-type="ol">Beginning on January 1, 2006, you will also be able to make a hardship withdrawal for funeral expenses and repair of a primary residence.</li> </ol><p></p><p>Hardship withdrawals are subject to income tax and, if your are not at least 59½ years of age, the 10% withdrawal penalty. You do not have to pay the withdrawal amount back.</p></blockquote><p></p>
[QUOTE="AmYisroelChai, post: 218422, member: 10496"] [URL]http://www.irs.gov/taxtopics/tc424.html[/URL] Many 401(k) plans allow employees to make a hardship withdrawal because of [B][I][U]immediate and heavy financial needs[/U][/I][/B]. Generally, hardship distributions from a 401(k) plan are limited to the amount of the employee's elective deferrals only, and do not include any income earned on the deferred amounts. [URL="http://www.guideto401khardships.com/"][U]http://www.guideto401khardships.com/[/U][/URL] The following four items are considered by the IRS as acceptable reasons for a hardship withdrawal: [LIST=1] [*]Un-reimbursed medical expenses for you, your spouse, or dependents. [*]Purchase of an employee's principal residence. [*]Payment of college tuition and related educational costs such as room and board for the next 12 months for you, your spouse, dependents, or children who are no longer dependents. [*]Payments necessary to prevent eviction of you from your home, or foreclosure on the mortgage of your principal residence. [*]Beginning on January 1, 2006, you will also be able to make a hardship withdrawal for funeral expenses and repair of a primary residence.[/LIST] Hardship withdrawals are subject to income tax and, if your are not at least 59½ years of age, the 10% withdrawal penalty. You do not have to pay the withdrawal amount back. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe UPS Forum
UPS Discussions
401k allows only hardship loans?
Top