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Would anyone consider a washing machine and dryer for a Hardship withdrawal?


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Posted

I feel sorry for this lady so I am trying a long shot. Would anyone consider a washing machine and dryer for a Hardship withdrawal?

The Plan doc says safe harbor rules?

Guest A_Dude
Posted

Sorry, if it doesn't fall under of the checkbox reasons per the Safe Harbor it cannot be approved. You could always amend the document though...

Posted

Only spot to squeeze thru is if she's buying it as a result of a casualty loss (normal wear and tear is not a casualty). And then it depends on how you read the reg which says "for the repair of damage to the employee's principal residence".

Even if you went outside the safe harbor and used facts and circumstances, I'd have difficultly approving it w/out other factors (caring for an invalid relative, etc). Laundromats are less common than they were 20 years ago but I know people who use them regularly.

Throw the IRS under the bus for having such a narrow definition of what counts as a hardship.

Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra

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