Nassau Posted September 12, 2011 Posted September 12, 2011 A participant has requested a hardship withdrawal for the purchase of a primary residence. However, he included in the documentation for the sale of his current residence as well. He is asking for the hardship withdrawal to cover his closing costs on the sale of his current home (the sale price is near the current loan balance, so he must bring money to the closing to cover all costs). He is also asking for the closing costs on the new primary residence. The purchase of the new residence appears to be dependent on the sale of the current residence. Question - Would the closing costs on the current residence that is being sold be allowable under the safe harbor hardship rules?
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