Comments on: 401k Hardship Withdrawal Rules http://amateurassetallocator.com/2010/01/07/401k-hardship-withdrawal-rules/ Amateur Asset Allocator Tue, 22 May 2012 02:58:13 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Sumar http://amateurassetallocator.com/2010/01/07/401k-hardship-withdrawal-rules/comment-page-1/#comment-13758 Sumar Sat, 05 Feb 2011 17:28:44 +0000 http://amateurassetallocator.com/?p=3414#comment-13758 Great article on 401k hardship rules. The final step you must meet to be eligible to make a successful withdrawal is the i) proof of need and ii) self authorization. i) Proof of Need: With this, you must disclose your finances to your employer and prove the financial hardship you are facing is legitimate & you have no other sources of funding. This method is NOT very popular with employers because they aren't interested in knowing about their employees' personal lives. Source: http://www.401k-withdrawal-rules.com ii) Self Authorization: With this method, you are not allowed to make 401k contributions to your plan for the next 6 months after you take a hardship withdrawal. With this, you do NOT have to disclose your finances to your employer. Think of the 6 month ban as a direct punishment for taking the withdrawal, you will obviously think deep before taking the withdrawal in such a case. Great article on 401k hardship rules. The final step you must meet to be eligible to make a successful withdrawal is the i) proof of need and ii) self authorization.

i) Proof of Need: With this, you must disclose your finances to your employer and prove the financial hardship you are facing is legitimate & you have no other sources of funding. This method is NOT very popular with employers because they aren’t interested in knowing about their employees’ personal lives.
Source: http://www.401k-withdrawal-rules.com

ii) Self Authorization: With this method, you are not allowed to make 401k contributions to your plan for the next 6 months after you take a hardship withdrawal. With this, you do NOT have to disclose your finances to your employer. Think of the 6 month ban as a direct punishment for taking the withdrawal, you will obviously think deep before taking the withdrawal in such a case.

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