Financial Hardship or Unforeseeable Emergency
Retirement savings plan are not designed to be used like a checking account. However, unexpected circumstances or emergencies do occur. That's why many plans permit withdrawals for certain financial emergencies.
If your employer's plan permits, you may be able to take a withdrawal to:
- Pay medical expenses for you, your spouse, a dependent, or beneficiary
- Prevent foreclosure or eviction from your primary residence
- Repair your principal residence for casualty loss not covered by insurance
- Pay for funeral expenses for your parent, spouse, child, dependent, or beneficiary
- Make a down payment on your primary residence1
- Pay college tuition that is due in the next 12 months for you, your spouse, a dependent, or beneficiary1
Amounts withdrawn may be subject to ordinary income taxes and your investment provider may also apply a withdrawal charge. Other taxes may also apply. Speak with your tax advisor for information on your specific circumstances.
1 Permitted under 403(b), 401(k), [ and 401(a) ? ] plans, but not 457(b) plans.
