Good afternoon,
My employer notified us of changes to hardship withdrawals through our retirement plan, and our company is now allowing withdrawals under domestic violence situations. However, I am concerned about the self certification process - do retirement plan administrators (Empower in this case) require proof? I have the form from my employer and it doesn't specify, but I am trying to plan for my safety in leaving and I'm worried that involving police to make reports to provide could make the situation worse.
Thank you for any insight you may have!
You self certify and no proof or police report is required. Note that the violence has to have occurred within the last 12 months. While the 10% penalty is waived you still have to pay your usual federal and, if applicable, your state income tax. But you can get the tax back if you repay the withdrawal within 3 years. The withdrawal amount is limited to the lesser of $10,000 or 50% of your vested amount in your plan.