If depleting your 401K while unemployed , any hardship criteria to offset taxes and penalties for early WD ?
Q. In order to avoid bankruptcy, during a 9 month period of unemployment, It was necessary to take early distribution monthly from 401K for income. Are there any hardship provisions for this type of "forced" early distribution?
Asked by nikkisdaddyo2000 - Wed Oct 10 12:31:47 2007 - - 4 Answers - 0 Comments

A. Early Withdrawal is subject to 10% penalty. Also the withdrawal will be taxed at your normal income tax rate. However, in some case there is no penalty on early withdrawals. *If distributions are not more than your qualified higher education expenses, *You have unreimbursed medical expenses that are more than 7.5% of your adjusted gross income. The distributions are not more than the cost of your medical insurance. *You are disabled. *You are the beneficiary of a deceased 401k owner. *You are receiving distributions in the form of an annuity. *You use the distributions to buy, build, or rebuild a first home. *The distribution is due to an IRS levy of the qualified plan. *The distribution is a qualified… [cont.]
Answered by MukatA - Wed Oct 10 13:04:55 2007

If someone is experiencing a hardship this is reason to ask for a distribution from their 401K?
Q. If someone is experiencing a hardship this is reason to ask for a distribution from their 401K?
Asked by deb157_2000 - Fri Aug 31 14:16:34 2007 - - 2 Answers - 0 Comments

A. First you have to meet these requirements -The withdrawal is necessary due to an immediate and severe financial need -The withdrawal is necessary to satisfy that need (i.e., you can t get the money elsewhere) -The amount of the loan does not exceed the amount of the need -You have already obtained all distributable or non-taxable loans available under your 401k plan If these conditions are met, the funds can be withdrawn and used for one of the following five purposes: -A primary home purchase -Higher education tuition, room and board and fees for the next twelve months for you, your spouse, your dependents or children (even if they are no longer dependent upon you) -To prevent eviction from your home or foreclosure on your… [cont.]
Answered by Jenn N Kentucky - Fri Aug 31 19:45:00 2007

Do dental bills count as medical expenses for 401k hardship withdrawal?
Q. My husband just got back from the dentist and found out he has about $3000 of work to be done in his mouth that insurance won't cover. Can we withdraw money from his 401k for this? His plan is administered by New York Life and according to the website, hardship distributions are allowed. I am waiting on the proper forms to be sent to us regarding distributions, just wondering if we are wasting our time or not. I already checked about getting a loan and they do not allow that. It's either get the withdrawal or not get all the work done which may result in acute periodontal disease.
Asked by jesswilkins - Tue Oct 28 12:31:21 2008 - - 5 Answers - 0 Comments

A. Yes, it qualifies as medical expenses for this purpose, but you don't avoid the 10% penalty or the regular income tax with a hardship withdrawal. You simply get access to the money. You may wish to explore other sources of loans. Your costs for the hardship withdrawal could be a lot higher than for the interest on the loan. Here is one more suggestion. Ask your husband's employer if they offer a flexible spending account for medical expenses. This allows your husband to spread the $3,000 expense over a full year. The employer will take a portion from each of your husband's paychecks, but you can spend the money you need to on the dental work immediately after January 1, 2009. You don't have to wait until the funds are deducted from… [cont.]
Answered by doreen k - Tue Oct 28 14:46:20 2008

What kind of ethical or legal fine line am i walking?
Q. I lied to get a "hardship distribution" from my 401k, I said I was being evicted (that was one of the few reasons that a person can gain access to the money) even though I'm not, and am using the money to obtain a divorce. i didn't do it to avoid taxes..i'm having taxes taken out. i understand it's fraud. I know a judge would see it that way. but to get out of an emotionally abusive marriage is not too bad is it? it's moved way past "working on things"
Asked by elfkin, attention whore - Tue May 22 12:10:07 2007 - - 4 Answers - 0 Comments

A. If you did it to avoid taxes than you broke the federal tax code laws and your in trouble.
Answered by chappye7 - Tue May 22 12:13:32 2007

I took out an early distribution from my 401k, I am 45, I had a hardship.?
Q. It was not a loan, I do not pay it back. I got a 1099-R form for my taxes where do I report this on my 1040 form? I got a response and it said I did not have to report it at all unless it was a default. What is that?
Asked by cynthia c - Tue Jan 22 16:04:29 2008 - - 3 Answers - 0 Comments

A. There is a pension distribution line on the 1040A and the 1040. Assuming that you do not have a qualifying reason for the withdrawl, there will also be a 10% penalty. Financial hardship is not a qualifying reason.
Answered by Wayne Z - Tue Jan 22 16:11:00 2008

I need to take a distribution from my 401K. What can I expect as tax & penalty?
Q. I need to take a distribution from my 401K due to a financial emergency (unemployment) and need to understand what i will owe the IRS out of that money. I know there is the 10% penalty (can that be waived if one has had to endure unemployment hardship?) and a tax amount. Is the tax going to be per my individual tax rate for is it a fixed amount?
Asked by A Z - Thu Sep 3 13:56:15 2009 - - 5 Answers - 0 Comments

A. The tax is whatever your bracket is including the distribution as income, and sorry but no the penalty can't be waived.
Answered by Judy - Thu Sep 3 18:15:26 2009

Is this a legitimate way to withdraw 401k w/o early distribution penalty?
Q. I'm going thru economic hardship right now (no job, no income). I have some money saved up in 401k but I really don't feel like paying the 10% penalty. If i roll over my 401k into Roth IRA (of course, I know that 's a 30% tax event), then do a complete distribution from that, I can avoid the 10% penalty. Anyone know if I can get in trouble for doing this?
Asked by FeedTheWorld! - Mon Apr 17 19:02:19 2006 - - 2 Answers - 0 Comments

A. You will have to pay dearly for pulling it out.
Answered by Chris Dingle - Mon Apr 17 19:14:53 2006

Can I do a rollover/direct distribution of 401k into a traditional IRA while still employed?
Q. I'm not satisfied with investment choices at the current 401k investment management company and would like to move my vested funds to another one. I found the following on the fund administrator's site: "You may withdraw Company Matching Contributions when you terminate employment with Company. To withdraw pre-tax Employee Contributions, you must also terminate employment or have a qualifying hardship as defined in the Savings Plan and IRS regulations." Shouldn't there be a law protecting ME? If I can find a better manager for MY MONEY, should I not be able to do so without quitting my job? TIA. Clarification for raidered81: I dont want to close the 401k, I want to keep it open (for future contributions and matching). I only want to take… [cont.]
Asked by teehee - Sat Jun 17 15:21:03 2006 - - 6 Answers - 0 Comments

A. The IRS allows you to move your retirement money from a 401k to a traditional IRA at anytime. Unfortunately, 401k rules are set by your employer within IRS guidelines. Most 401k's have a mandatory tax withholding of 20% if you leave them early - even if it's to move into another plan. Basically what you need to do is ask your plan administrator if you can do a directed rollover with any penalty. Whatever their answer is will determine your next steps.
Answered by Chris R - Sun Jun 18 01:59:05 2006

I took an early distribution from my Tradtional Ira do i have to file the taxes on that this year?
Q. I am unemployed just moved to FL 7 months ago and the only reason was because a Hardship
Asked by OVERTHINKER - Thu Feb 7 17:30:01 2008 - - 1 Answers - 0 Comments

A. Yes!
Answered by TedEx - Thu Feb 7 17:32:48 2008

What is Pearson 6 distribution? In what situation we can find this statistical distribution?
Q. I am an engineering student. I am looking for the information about Pearson 6 distribution but find a hardship to obtain detail info from internet or reference books. I am conducting a simulation on post office counter service system and Pearson 6 distribution is suggested to be used to represent the service duration of the server. I want to prove that this is suitable for my model or find another better distribution. This distribution is actually suggested by a statistical software, but i cant simply rely on it. How can I obtain a good distribution (by manual calcution) for a set of data with more than 10,000 data?
Asked by casperloh - Thu Apr 3 04:39:01 2008 - - 1 Answers - 0 Comments

A. Click on this link - www.en.wikipedia.org/wiki /Pearson_distribution#Def inition
Answered by champscience - Thu Apr 3 06:34:37 2008

Trust Modification/Early Termination Question - Montana?
Q. Hello all. Is anyone familiar enough with trust laws and able to give feedback as to the likelihood of judge granting an early termination to me of my share of trust based on the fact that I'm 41 years and face major financial hardship, whereas the trust was set up to term. When beneficiaries reach age 50. One other beneficiary recvd final distribution - my brother just turned 50, and the only other beneficiary will reach 50 within 3 years time. I am the only one who has a long wait and truly need the funds to provide for basic living and medical expenses which my lawyer can prove to be justifiable. With this information, I m just hoping to compare your answer with that of my attorney - who's over 800 miles away in Montana, leaving me… [cont.]
Asked by Josh R - Sat Nov 4 16:38:12 2006 - - 1 Answers - 0 Comments

A. It will depend on the purpose of the trust and its exact wording. If the trust was to keep you from spending the money foolishly and you need it because you have been foolish with your own money, it won't work.
Answered by thylawyer - Sat Nov 4 16:43:48 2006

401k liquidation to save business & jobs?
Q. I have a small business that employees 35 people. We manufacture a product that's sold almost 100% in new home construction. As you can imagine, the new home economy has devastated my business and we struggled to stay afloat during 2009. In order to help keep the doors open and "create or save" 35 jobs, I had to remortgage our home and liquidate my 401k to put cash into the business to cover payroll, utilities, and material purchases. While this action has helped save my business, it is now going to send me into more personal debt to pay my 2009 tax bill come April 15th. I can understand the IRS wanting their rightful taxes on the 401k money, but for that 401k distribution to also push me into a WAAAY higher tax bracket than I would… [cont.]
Asked by Racemule - Tue Jan 26 23:19:43 2010 - - 4 Answers - 0 Comments

A. You are just toast on this. This is how it works, and how it has always works. The accepted rule is that you must pay the tax. The hardship rule is that you can ask Congress to change the law, because that is what it would take for the IRS to be able to let you not pay the tax that the rest of us must pay when we take money from our 401K's.
Answered by StephenWeinstein - Tue Jan 26 23:24:54 2010

Are any of you aware of what is going on and how your lives may soon be effected by Feb. 10, 2009?
Q. Please read this blog as well as visit this website has another article that shows the potential threats to crafters, small business', charites, liability to resalers, E-bay sales, and on and on the list goes in some twisted reponse by our legislatures to response to toys with lead in them from China!!! Consumer Products Safety Improvement Act of 2008 Earlier this week, news reports began circulating about the Consumer Products Safety Improvement Act of 2008 which would require third-party testing on consumer goods (including apparel) used by children. The purpose of the act is to keep lead-filled products away from children. It is directed at lead-based paint and phthalates (chemicals used to keep plastics pliable) in products that… [cont.]
Asked by Kelly R - Thu Feb 5 14:14:37 2009 - - 2 Answers - 0 Comments

A. The CPSB has announced that these rules will affect only new products, not resale products.
Answered by Brian L - Thu Feb 5 14:20:21 2009

Helping the developing world?
Q. Countries like Africa have many hardships. Now what are some solutions for the following problems. 1. Corrupt officials steal the money and goods sent to the country as aid. 2. Desperate need for food and clean water. 3. People will riot when supplies arrive in the village (e.g solution: Build a distribution center, distribute vouchers, Hire armed Guards). 4. Farm animals are dying 5. Many are so weak from starvation they cannot move 6. Their religion forbids them from certain foods to eat 7. They haven't had rain for months and cannot afford to buy water 8. Over one million people have left their villages in search of food and clean water. They have nowhere to live. remember the environment degradation makes it harder to fix the problem.… [cont.]
Asked by RealityKills

A. It's really a big problem. Many poor countries could alleviate some of the food problems you mention by using modern machinery, methods and fertilizers. But, that kind of technology is hard to come by due to low education levels. Diseases, like malaria, also play a big role because they cause lost productivity. I would recommend "The End of Poverty" by Jeffrey Sachs. He discusses many of these issues in his book. I don't remember all of them but one big solution for diseases was insecticide treated bed nets to combat malaria. He is also a big proponent of more investment in the country.
Answered by jimbad05 - Thu Jul 23 09:57:16 2009

edit my personal statement PLEASE?
Q. Describe the world you come from for example, your family, community or school and tell us how your world has shaped your dreams and aspirations. I would come exhausted, wanting nothing more than a cold glass of water and a nice cool shower. At the age of the twelve I no longer yearned for many material objects a kid my age would desire. A the age of twelve my innocence was extinguished by the act of work. My families financial situation enabled my father to start selling oranges door to door. This in my mind was violating city ordinances, but when I advised him of such, he responded with a very solid and cheerful so ?. Although I was never forced to engage in my fathers attempt of entrepreneurship, I felt the need of doing so. I was… [cont.]
Asked by valentino - Wed Aug 26 23:30:49 2009 - - 2 Answers - 0 Comments

A. I don't see a personal statement at all. Your intro and conclusion also need to be added if not changed. I don't know how old you are; I assuming middle school. You have too may random words worked in to fluff up your essay. Some of them don't go with your sentences. Easy change would be to start with "Selling oranges was my life" and then go into your next sentence: 'I would come home...' End your essay the same way. "Selling oranges was my life." Good luck.
Answered by itgirl - Wed Aug 26 23:44:48 2009