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What is a 401k hardship withdrawal?

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1st Nov 2009 by Joseph Pousada

If you are under 59 ˝ years of age you may withdraw from your 401k if you have a “financial hardship”. You should consult your tax advisor about your personal specific situation, not only to ensure you meet the specific definition of “personal hardship” but to see if how this will impact you in terms of penalties and the fact that it will be considered income for the year in which it is withdrawn and about any other options you may have. You may qualify if you need funds for certain medical expenses for yourself and your family (spouse / domestic partner /dependents), for certain costs in the purchase of a home in which it will be your primary place of residence or for prevention of loosing your primary residence to avoid foreclosure and eviction or for certain damage expenses to your primary residence, certain funeral expenses, certain basic costs with postsecondary education for you and your family ( spouse / domestic partner / dependents ).

Reference:
http://www.irs.gov/retirement/sponsor/article/0,,id=151926,00.html

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20th Oct 2009 In Retirement 1 Answers | 621 Views
Subjects: 401k, 401k hardship withdrawal,

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