Jump to content

Recommended Posts

Posted

I lost my job about a year ago.  I could not take a hardship withdrawal because I was no longer with the company

I was unable to pay large recent medical bills or rent due to the job loss so I cashed out my 401k (around $20k) to take care of those things

The tax paperwork from my plan does not indicate a hardship withdrawal so I'm getting killed on taxes.    Is there a way to show on my taxes that it was a hardship or can my plan provide corrected docs?

 

 

Posted

A "HARDSHIP" is only a means of receiving a distribution from the plan when one would not otherwise be available.  ALL distributions are going to be taxable to you.  Hardship doesn't impact the taxes; it only makes the distribution permissible when it otherwise would not have been.  In your case, you didn't need a hardship because you were already eligible for a distribution; you had a severance of employment.

Good Luck!

CPC, QPA, QKA, TGPC, ERPA

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

Terms of Use