@ZeroNights wrote:
TLDR: I am stupid and withdrawal early. Debating about using it to help parents, but rather not commit fraud, if audit, but likelihood of being audited is tiny, but again, accidental derp on my part. Probably should return it and do a hardship loan instead.
Thank you !
Separate to the previous answers:
You should not have to do a "hardship" loan. If this is a work plan (401k or 403b) then most of the time, you can take a loan for any reason, you don't have to certify a hardship. (Although maybe for some employers, they only allow loans for hardships?)
With a loan you are usually required to make your repayments via payroll deductions, and as long as you make your payments, there are no tax consequences or tax reporting issues for a loan.
