Hardship Withdrawals

Not all retirement plans contain a hardship provision.  Please check your plan document or call Professional Benefit Services, Inc. if you are unsure if your retirement plan permits hardship withdrawals.

If your retirement plan does allow hardship withdrawals, there are some general IRS limitations and additional limitations may be stipulated by the plan's document.  Hardship withdrawals, if permitted, are, in most cases, limited to employee elective deferral deposits only (check your individual document).  Employer dollars and earnings on employer or employee dollars are NOT eligible for a hardship withdrawal.  Once a hardship request is processed, you may not participate in the retirement plan for six months.

Please carefully read the Request for Hardship Withdrawal Form for limitations and documentation required to take a hardship withdrawal.

If you would like to take out a retirement plan hardship withdrawal (and your retirement plan does allow hardship withdrawals), please complete a Request for Hardship Withdrawal Form.  Please note:  there is a $75 processing fee for each hardship withdrawal.

Related Facts

• Hardships are available for deferral deposits only, no employer contributions or earnings.
• Hardship distributions are taxable distributions.
• You cannot defer from pay for 6 months after you take a hardship withdrawal.
• You must provide proof of hardship at the time you take the hardship distribution.