Hardship withdrawal for Bankruptcy

[gooseblitz]

I am halfway through a bankruptcy and I am looking to take a 401K withdrawal to pay off the balance. Can I qualify to take without 10% penalty?

Can I have the taxes withheld now so I don't take a hit in April?

 

[ratherbereading]

You need to check your plan's legal document for hardship provisions (safe harbor vs facts & circumstances).  That may not qualify and your plan may not even allow hardship withdrawals.  If your plan allows for in-service withdrawals at 59 1/2, and you are that age or over, the 10% penalty won't come into play.  You can specity the tax amount you want taken but that won't guarantee you won't owe in April. I'm not qualified to give tax advice.  Hope that helps. 

[QDROphile]

It never hurts to be reminded that just because you can do some thing does not mean it is the best thing to do. Are you receiving advice about the wisdom of using your 401(k) money for the purpose you intend?