Retirement Savings Plan Summary Plan Description
6.1 Hardship Withdrawals
Before you leave covered employment, you may take a single sum distribution from your 401(k) contribution and rollover portions of your account if you qualify for a hardship withdrawal. You are limited to two hardship withdrawals during any Plan year, and you must attempt to meet your hardship need by first taking any available Plan loans. Your hardship withdrawal, which may not exceed the amount of your financial need plus taxes and penalties on the withdrawal, is available only for:
- medical care as described in the Internal Revenue Code for you, or your spouse, dependents or beneficiary;
- costs directly related to the purchase (excluding mortgage payments) of your principal residence;
- the payment of post-secondary education tuition (and related educational fees, room and board) for the next 12 months for you, or your spouse, dependent or beneficiary;
- to prevent your eviction from, or the foreclosure on the mortgage of, your principal residence;
- funeral expenses of your deceased spouse, parent, dependent or beneficiary;
- expenses to repair damage to your principal residence and that are described in the tax code; and
- the payment of your installment (e.g., credit card or automobile loan) debt that is at least 30 days past due by reason of your inability to make timely payments.
You must provide documentation supporting your hardship and certify that you have insufficient cash and other liquid assets to satisfy the need. Also, the withdrawal may not exceed the amount of the financial need (including federal and state income taxes reasonably expected to result from the withdrawal). Hardship withdrawals should not be requested unless necessary. They are subject to ordinary income tax and, if you have not yet attained age 59 ½, significant state and federal penalty taxes.