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401k Hardship Withdrawal Denied for Lease/Purchase Agreement

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IT-Geek

Junior Member
Can it be construed that my civil rights are being violated when being denied a 401k hardship withdrawal to purchase my primary residence through a lease/purchase agreement?What is the name of your state (only U.S. law)?
 


Hot Topic

Senior Member
Can it be construed that my civil rights are being violated when being denied a 401k hardship withdrawal to purchase my primary residence through a lease/purchase agreement?What is the name of your state (only U.S. law)?


If you didn't want to abide by the rules, you shouldn't have opened a 401(k).

Why should buying or leasing your primary residence be considered a "hardship withdrawal?"
 

cbg

I'm a Northern Girl
Purchase of the employee's primary residence is a valid reason for a hardship withdrawal under the law. There are very few permissable reasons but this is one of them.

However, while the IRS says that a hardship withdrawal MAY be taken does not mean that the plan document MUST permit it. And while a purchase is a valid reason under IRS regs, I've never heard of a lease being included.
 

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