You may be able to apply for a loan against your 401k plan. Many people prefer this option because there are no penalty fees or taxes due, depending on the loan's purpose. If your 401k plan will not allow you to take a loan, you may be able to apply for a Hardship Withdrawal. The IRS has determined that the following categories constitute a Hardship Withdrawal:
· Down Payment for a Home
· College Tuition (for self or dependents)
· Unpaid Medical Expenses
· Preventing Evictions or Foreclosures
If you believe that your situation falls into one of these categories, consult with your Human Resources department or your financial services provider. You may be able to withdraw from your 401k plan. Every 401k plan is different and various companies have different rules and regulations.
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