College Tuition 401k Hardship Withdrawal Question

Hi,

How does one get a statement of sorts or proof of class billing for the future 12 months? Normally you don't know what classes are available for the future semester until around the end of the current semester you're in. To figure out what classes are available in 9 months isn't really possible, nor is it to submit paperwork with correct classes on it if the college doesn't even have the courses posted that far out? Looking at doing a withdrawal since we don't have anymore financial aid loans available before finishing degree in about 9 months. I apologize if I'm missing something, or have overlooked something on my state colleges website that is obvious.

Thanks in advance.

I will take a stab at this. The hardship rules require that the distribution relieves a financial burden. At this point you don't have a financial burden to relieve (anticipated yes, but not yet). So you cannot request a distribution until you have a financial burden (which I think is your point). When you register for your classes later this year you will be provided with a tuition invoice based on classes/credits. At that point you can then request the distribution using an actual invoice for future classes. Until you have the invoice, you cannot request the distribution for future classes.

Actually, a hardship withdrawal for tuition usually can be projected out for the next 12 months.  Talk with your financial aid officer and see if they can provide you with an estimate, based on your remaining classes, of the amount that would be due.

Also, check to deteremine if the plan allows for more than one hardship per year.  Many plans allow for two.  If that is the case, you could take a hardship for now and then do another one later.

You may also want to discuss with the Plan Administrator about your options as the plan may have different options in the near future than it does now due to the current regulatory environment surrounding hardships.