Can I make a hardship withdrawal from my 401(k)?
If your 401(k) plan allows hardship distributions, you can withdraw money for yourself, your spouse, or your dependents for "an immediate and heavy financial need" per the IRS. Your plan may allow withdrawals for:
Certain medical expenses
The purchase of your main home
Tuition and educational expenses
Payments to prevent eviction or foreclosure on your main home
Burial or funeral expenses
Certain expenses for the repair of damage to your main home
It's up to your employer and the plan custodian to approve your request for a hardship withdrawal. The amount of a hardship distribution must be limited to the amount necessary to satisfy the need.
Unlike a loan against your 401(k), a hardship withdrawal can’t be repaid. It'll be treated as a taxable distribution and reported on a 1099-R.
If you’re under age 59 1/2, you may have to pay a 10% early distribution penalty if you don’t qualify for an exception.
If you live in a federally declared disaster area, the 10% early withdrawal penalty for accounts up to $22,000 for tax year 2025 waived.
