Money withdrawn from an employer-sponsored retirement plan orIRA to cover an immediate need such as unforeseen medical expenses, a first-time home purchase, higher educationortuition costs, expenses to prevent eviction or a foreclosure,funeral expenses, or to repair damage to a principal residence caused by an unusual event such as a hurricane, tornado, or other natural disaster. Provisions for what expenses qualify for a hardship withdrawal can vary from plan to plan. Hardship withdrawals are subject to federal and state taxes and, if taken before age59½, may be subject to a 10% federal penalty tax. Please contact a tax advisor for more detailed tax information on hardship withdrawals from an employer-sponsored retirement plan or IRA.
