Hardship to prevent eviction from parent's house?

[Guest ssmith]

We have had a participant who lives in her dad's house request a hardship withdrawal because she is behind on her rent owed to her dad. The dad expects his rent money to be paid by the summer and won't allow the participant or her sons to live at his house if the debt is not paid. Has anyone else run into this situation before? Would this situation count as preventing eviction from the participant's principal residence? I think that it would since she will indeed be forced out of her principal residence even though she is renting from her dad, but just wanted to hear some other thoughts. Thanks!

[Lori Friedman]

Reg. Sec. 1.401(k)-1(d)(3)(iii)(B)(3) allows "Payments necessary to prevent the eviction...from the...principal residence." I can't find any rulings or other guidance that refine or otherwise qualify the regulation.

If the plan participant is truly facing a threat of eviction, which seems to be the case, I can't locate any authority that would prevent her from receiving a hardship distribution (to the extent of her immediate and heavy financial need).

By the way, her father sounds like a real prince of guy.

[david rigby]

... but the plan administrator should not ignore the possibility of fraud.

In the words of Dr. House, "Everybody lies."

[Guest ssmith]

Thanks for your thoughts!