dmertz
Level 15

Retirement tax questions

@TaxGuyBill, you are correct.  Hardship distributions from a 401(k) are not eligible rollover distributions, nor are they exempt from early-distribution penalties.

Some 401(k)s might permit in-service distributions of part of the balance in the account before age 59½, but your own 401(k) deferrals cannot be distributed while you are under age 59½ and still employed without taking a hardship distribution.