unforseeable emergency

[Guest makazhia]

:confused: I have plan 457 . I want to liquidate my assests i have a finanical hardship my employer gave me a form to write down all my personal information: rent payment utilities food and clothing medical expenses car payments other transportation charge account payments college expenses insurance premiums spouse salary my salary cash in savings and checking stocks and bonds life insurance cash value and other income. Am i required to give all that information to them to get my money. I feel thats being too personal. how can i work around that so i can get my money?

[QDROphile]

The ability to get money out of the plan before you terminate employment is a very limited. The plan must follow the law. Distributions while you are still employed are allowed only for "unforeseeable emergency." Among other things, a distribution is not allowed if events that cause the financial need are within the control of the participant (like running up consumer debt) or can be met from other sources, including liquidation of assets or reimbursement by insurance. To put it bluntly, you must be close to destititute. Even then, the distribution must be limited to what is actually needed to meet the emergency. So all of your debts and all of your resources, even your ability to borrow, are relevant to whether you may get the money and how much you can get.

Some plan administrators are more lax than others about the scrutiny they apply to requests, but it is difficult to argue with exacting standards. It is not supposed to be easy to get the money and the administrator must be satisified that the rules are followed.

[mbozek]

Your participation in the plan is subject to the terms of the plan document . If the plan document requires that the information be given then you are required to provide the information. The only other way to get the money is to terminate emplyment.