What rules apply to Retirement Plan Hardship Withdrawals?

Every 401k plan could have different rules for taking a Hardship distribution. Some plans allow for Hardship distributions while others do not. If your plan allows for a Hardship distribution the details will be stated in the plan document.

The IRS allows the following reasons for taking a hardship withdrawal in the Plan:

– To obtain medical care or to pay medical expenses incurred by you, your spouse or any of your

– Purchase (excluding mortgage payments) or repairs from damage of your principal residence.

– Payment of tuition and related educational expenses for the next year of post-secondary
education for you, your spouse or any of your dependents.

– The need to prevent eviction from or mortgage foreclosure on your personal residence.

– Funeral expenses.

Please contact the RPG Helpdesk if you have any questions in this regard or require additional forms.