Hi folks,
New member here, and having difficulty finding answers to my questions. Long story made short: I'm in my final year of college, recently separated from my wife, with no savings (that she depleted on frivolous purchases shortly after declaring her intentions to separate), and mounting expenses that could become catastrophic as well as ruin my stability and ability to work. I'm debating submitting an e-certified proof of hardship using my college tuition to receive what little I have in my 401k, to help pay my tuition next term. This is because I will then receive a larger refund for my excess student loan amount, which will be paramount to helping me through a myriad of medical / vehicular / legal expenses. Before you begin the "lecture" on hardship withdrawals: I'm 24 years old, currently in the Armed Forces, trying to graduate university, am about to experience the disaster and expense of divorce, with an 18-month old daughter who gets to suffer and who I am trying to support now on my income alone - also throw in some likely expensive vehicle repairs and other expenses, and you can easily see my need for some emergency funding. I fully understand how penalizing and negative a hardship withdrawal is. I don't care how old and wise you are. I don't need to hear it from you. Let's leave it at that. My questions are:
1. What documentation do I / might I need to show, stating that I actually used my hardship withdrawal to pay my tuition, after I receive my withdrawal? I've found plenty of information for other withdrawal types - but not this.
2. Can I still receive a hardship withdrawal, even though I have student loans and a small grant helping pay my tuition?
2a. I ask this because of my aforementioned statement: Paying my tuition "out of pocket" (with this small amount left over in my 401k) will yield a refund from my university that will help with the above issues.
3. Can hardship withdrawals be used for other expenses besides tuition, eviction, funeral expenses or medical expenses?
3a. Is this legal?
V/r
Travis
New member here, and having difficulty finding answers to my questions. Long story made short: I'm in my final year of college, recently separated from my wife, with no savings (that she depleted on frivolous purchases shortly after declaring her intentions to separate), and mounting expenses that could become catastrophic as well as ruin my stability and ability to work. I'm debating submitting an e-certified proof of hardship using my college tuition to receive what little I have in my 401k, to help pay my tuition next term. This is because I will then receive a larger refund for my excess student loan amount, which will be paramount to helping me through a myriad of medical / vehicular / legal expenses. Before you begin the "lecture" on hardship withdrawals: I'm 24 years old, currently in the Armed Forces, trying to graduate university, am about to experience the disaster and expense of divorce, with an 18-month old daughter who gets to suffer and who I am trying to support now on my income alone - also throw in some likely expensive vehicle repairs and other expenses, and you can easily see my need for some emergency funding. I fully understand how penalizing and negative a hardship withdrawal is. I don't care how old and wise you are. I don't need to hear it from you. Let's leave it at that. My questions are:
1. What documentation do I / might I need to show, stating that I actually used my hardship withdrawal to pay my tuition, after I receive my withdrawal? I've found plenty of information for other withdrawal types - but not this.
2. Can I still receive a hardship withdrawal, even though I have student loans and a small grant helping pay my tuition?
2a. I ask this because of my aforementioned statement: Paying my tuition "out of pocket" (with this small amount left over in my 401k) will yield a refund from my university that will help with the above issues.
3. Can hardship withdrawals be used for other expenses besides tuition, eviction, funeral expenses or medical expenses?
3a. Is this legal?
V/r
Travis