i need to file for a hardship to receive $1,600.00, but they advise the hardship must be severe, how shold i approach this and what should i do to apply?
2007-02-02 15:34:56 · 1 answers · asked by DARNELL 1 in Business & Finance ➔ Personal Finance
You should tell the truth, because it will all have to be documented anyway. Ask the plan administrator for the details. If it is a 401K, there is a good bit of flexibility in them. You can basically loan yourself some money, and pay it back at interest. You have to tell why you need it, but that may not be all that critical a detail once the rules for such loans is in place.
Read the contract under which your 401K plan is written. It should spell out what's involved in giving yourself a loan. Keep in mind that while it is your money, it is tax-free at the moment because you will be taxed on it when you take disbursements on it after you retire, presumably at a lower tax rate than you pay while working. So in order to protect that tax (and penalty) free status, you will have to deal with the paperwork and some pretty regulated stuff. And it takes a couple of weeks, most commonly, often more.
2007-02-04 10:31:07 · answer #1 · answered by auntb93again 7 · 0⤊ 0⤋