Sometimes life takes an unexpected turn. The Individual Account Plan (IAP) has you covered should you need to take a hardship withdrawal for “an immediate and heavy financial need” as defined by the IRS. The IRS has set guidelines on qualifying situations and allows retirement plans the discretion to select which qualifying situations to include. Before planning to take a hardship withdrawal, confirm that your need is covered under the guidelines of our IAP.
| Reason for taking a hardship withdrawal
|
Allowed by the IRS | Allowed by the IAP |
| Medical expenses for the employee, the employee’s spouse, dependents or beneficiary |
X |
X |
| Costs directly related to the purchase of an employee’s principal residence |
X |
|
| Tuition, related educational fees and room and board expenses for the next 12 months of postsecondary education for the employee or the employee’s spouse, children, dependents or beneficiary |
X |
|
| Payments necessary to prevent the eviction of the employee’s principal residence or foreclosure on the mortgage on the residence |
X |
X |
| Funeral expenses for the employee, the employee’s spouse, children, dependents or beneficiary |
X |
|
| Certain expenses to repair damage to the employee’s principal residence |
X |