What is a hardship 401(k) withdrawal?

As noted above, amounts you contributed to a 401(k) plan are typically not accessible until you terminate employment, reach age 59 ½, or become disabled. However, the IRS permits your employer to allow for one added type of distribution while you are employed for a severe and immediate need (typically falling within a very specific list of situations). If taken, these distributions may still be subject to early withdrawal penalties, are not eligible for rollover, and cannot be repaid to the plan.

The withdrawal itself must be limited to the amount needed (may be adjusted to include taxes and penalties).

Your Summary Plan Description (SPD) can provide more information on what types of withdrawals your plan allows, and you can see more information about distributions you may be eligible for by selecting your 401(k) account in the withdrawal menu here.

It is important to consult IRS guidelines or a financial professional regarding early distributions.