Permalink Submitted by mk foss on Tue, 2011-02-08 18:52
Almost aways. The 401k hardship withdrawal comes about when someone who has not reached aged 59-1/2 had a need for a distribution from the qualified plan.
If the hardship is for medical expenses for the plan participant, family or beneficiary, that would be an exception to the 10% penalty but most other hardships (college, home purchase etc) do not qualify for the available exceptions from the 10% penalty.
Permalink Submitted by mk foss on Tue, 2011-02-08 18:52
Almost aways. The 401k hardship withdrawal comes about when someone who has not reached aged 59-1/2 had a need for a distribution from the qualified plan.
If the hardship is for medical expenses for the plan participant, family or beneficiary, that would be an exception to the 10% penalty but most other hardships (college, home purchase etc) do not qualify for the available exceptions from the 10% penalty.