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Hardship Distributions

"Hardship" @ Museo National d'Art de Catalunya, Barcelona

Hardship Distributions From Retirement Plans

and

IRS Safe Harbors

Written by: Steven J. Fromm, J.D., LL.M. (Taxation)

With so many people struggling in this bad economy, many are desperate to get money from any source available.  Prematurely withdrawing funds from retirement plans before retirement is generally not a good idea as this can have a huge impact on the amount of retirement assets available at retirement.  Still many must use the hardship provision just to survive.  Some retirement plans may (but are not required to) allow participants to receive hardship distributions.  The following sheds light on the hardship withdraw option:    

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