Apr 29, 2019
In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, provide us with insight into what a 401(k) plan hardship withdrawal is, what the rules and restrictions involved in hardship withdrawals are, and how law changes have affected the regulations of hardship distributions.
3 Key Points:
- “Hardship withdrawals aren’t free. There is a cost involved in that, and that would be…they are taxable.” – Bill Bush.
- “The hardship withdrawal cannot exceed the amount of the need.” – Andy Bush.
- “Most people are going to look for other measures first, I would think, before they tap into their retirement savings.” – Andy Bush.