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Posted

I know the IRS defines a Hardship as "costs relating to the purchase of a principal residence".  The question is what would be included in that?  For example, does the cost of a moving van, etc. fall under that?  Or does it mean closing costs, attorney fees, etc.?

Thanks in advance!

Posted

Eligible expenses would be things like costs directly related to the purchase or construction of a primary residence, including building materials and closing costs. Not a moving van since that has nothing to do with the purchase of a principal residence.

Posted
1 hour ago, Karoline Curran said:

Eligible expenses would be things like costs directly related to the purchase or construction of a primary residence, including building materials and closing costs. Not a moving van since that has nothing to do with the purchase of a principal residence.

Perfect answer; 100% agree.

Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC
President
Qualified Plan Consultants, Inc.
46 Daggett Drive
West Springfield, MA 01089
413-736-2066
larrystarr@qpc-inc.com

Posted

The answer we usually give is to use the Closing settlement statement for what the participant needs to bring to closing and that's the amount needed for the purchase of the residence.

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