Hardship distribution

[R. Butler]

Participant failed to pay property taxes on his principal residence. The tax lein sold at auction. The purchaser of the tax lein is going to forclose. The regs provide that Payments necessary to prevent the eviction of the employee from the employee's principal residence or foreclosure on the mortgage on that residence; will qualify for a hardship.

Is there any guidance that suggests that payment of the tax lein to prevent forclosure is permissable?

Thanks in advance.

[QDROphile]

Is it reasonable to assume that the tax foreclosure will lead to eviction?

[masteff]

QDRO's right on, you're overlooking the "or" in that sentence... if you trim out the extra phrases, you have "eviction or foreclosure".