FINANCIAL HARDSHIP/UNFORESEEABLE EMERGENCY WITHDRAWAL
You can take a hardship withdrawal while employed (subject to the IRS 10% penalty) for the reasons in bold below. Please read on for details and documentation required.
Medical expenses
This withdrawal is intended for eligible medical expenses incurred by you, your spouse, dependents, or primary beneficiaries not covered by your insurance. Eligible expenses can include diagnosis, treatment, disease prevention, associated transportation, or long-term care.
You must retain the following document(s) to substantiate your financial hardship:
- An itemized bill/invoice from a health care provider issued within the last year detailing qualifying medical expenses such as diagnosis, treatment, or long-term care.
- An explanation of benefits from your insurance company detailing coverage and medical expenses not covered.
Purchase Principal Residence
This withdrawal is intended for the purchase and/or cost of building a principal residence. The withdrawal cannot be used for mortgage payments, home equity loan payments, and properties such as vacation homes or income properties.
You must retain the following document(s) to substantiate your financial hardship:
- A signed purchase and sales contract and/or other signed sales contract that includes costs associated with the purchase of your primary residence.
Prevent Eviction/Foreclosure
This withdrawal is intended to prevent an eviction or foreclosure from your principal residence.
You must retain one or more of the following documents to substantiate your hardship. Documents and dates must be within the last 12 months.
Acceptable documents:
- An eviction or foreclosure notice from the bank, credit union lender, landlord, or servicer of the mortgage which references the address of your principal residence and reflects dates of payments to avoid eviction or foreclosure.
Tuition expenses
This withdrawal is intended for post-secondary education expenses, for you, your spouse, children, dependents, or named primary beneficiaries. Educational expenses can include tuition, room and board, or other education-related expenses, for up to 12 months.
You must retain one or more of the following documents to substantiate your hardship. Documents and dates must be within the last 12 months.
Acceptable documents:
- A bill from the educational institution with the student’s name and payments related to the student’s enrollment and registration.
- The bill must also include expenses for the next 12 months of tuition, room and board, and related educational expenses such as schoolbooks.
Funeral Expenses
This withdrawal is intended for funeral or burial expenses for deceased parent(s), spouse(s), child, dependent(s), or named primary beneficiaries.
You must retain one or more of the following documents to substantiate your hardship. Documents and dates must be within the last 12 months.
Acceptable documents:
- A death certificate or other documentation detailing the deceased date of passing.
- Copies of invoices or receipts from a funeral home or cemetery referring to the deceased’s funeral and burial expenses with the date.
Principal Residence Repairs
This withdrawal is intended for expenses for damage to your principal residence from an identifiable event. This can include fire, storms, or destruction of a sudden and unusual nature not covered by insurance. This withdrawal is not intended to cover damages from normal wear and tear on a principal residence.
You must retain the following document(s) to substantiate your financial hardship:
- Copies of invoices and/or receipts showing the costs to repair your principal residence.
- Insurance claim estimates/statements from the insurance company showing the date of loss, cause, and the amount of the repair costs covered, reimbursed, and not covered.
Federally Declared Disaster
This withdrawal is intended for expenses incurred due to a federally declared disaster. Your principal residence must have been in the disaster area at the time designated by FEMA for individual assistance.
You must retain one or more of the following documents to substantiate your hardship. Documents and dates must be within the last 12 months.
Acceptable documents:
- Copies of receipts for living expenses incurred due to a federally declared disaster such as hotel costs, storage expenses, or rental cars.
- Copies of invoices and/or receipts showing the cost of repairs to damaged or lost property with a statement from your insurance company of reimbursement that was denied.