401k HARDSHIP EVIDENCE

[earl navarro]

Hi.,

I am new to this forum, so I apologize if I post on the wrong area.

Anyways I was trying to get a hardship withdrawal from my 401K but plan administrator denied the evidence I gave them.

it is a letter from my MORTGAGE company saying

they will accelerate my loan , sell my property.

if I understand this that means they are going to start foreclosure.

this is happening by 9/24/15

Do I have to be in Foreclosure for them to help me? or the letter good enough

to prevent foreclosure?

and also what is acceleration

please clarify

[ETA Consulting LLC]

We know that prevention of eviction or foreclosure is a condition for hardship. If that is the case, then it would be appropriate to ascertain what the Plan Administrator would require as proof that you need a hardship to prevent foreclosure. I don't believe the foreclosure process would be necessary, but that a hardship merely be necessary in order to prevent it. What constitutes proof to the Plan Administrator would be a question for that plan administrator. Just remember, you may have to go through a few steps to prove that a hardship exists.

Good Luck!

[401king]

Have you contacted the administrator to determine their requirements? Are you certain that the Plan allows Hardship Distributions?

[ESOP Guy]

I would start by telling administrator what you are telling us and asking what is the acceptable evidence to get the needed hardship to stop a foreclosure from happening.

The administrator most likely is sympathetic to your plight. It is just they have to balance your need with all the rules that govern plans. Failure to follow the rules hurts everyone in the plan and the company that sponsors the plan.

So try and have a simple conversation with them and don't assume they aren't willing to be helpful.

[earl navarro]

thanks all for your feedback, I have spoken with the plan administrator, they want a letter from the mortgage company stating that a FORECLOSURE proceeding will start if I don't pay in time,

I talked to my Mortgage Company and they say they are going to give me a 401K letter.., hopefully these has the wordings that the 401k plan administrator is looking for.

appreciate you guys.