Hardship Withdrawal

Business / Taxes / Hardship Withdrawal: A hardship withdrawal, also known as a hardship distribution, occurs when you take money out of your 401(k) or other qualified retirement savings plan to cover pressing financial needs. You must qualify to withdraw by meeting the conditions your plan imposes in keeping with Internal Revenue Service (IRS) guidelines. For example, you may have to demonstrate how urgent the situation is and prove you have no other resources. Some allowances are purchasing your primary home, covering out-of-pocket medical expenses for yourself or a dependent, and paying college tuition for yourself or a dependent. However, if you're younger than 59 1/2, you must pay a 10% penalty plus income tax on the amount you withdraw. You also may not be permitted to contribute to the plan again for six months.

Other Words for Hardship

Hardship Verb Synonyms: want, privation, deprivation, suffering, misery, distress, affliction, adversity, austerity, misfortune, unhappiness, ill fortune, bad luck, difficulty, trouble

Systematic Withdrawal Plan

Business / Finance / Systematic Withdrawal Plan: Only the systematic portion of risk matters in large, well-diversified portfolios. Thus, expected returns must be related only to systematic risks. MORE

Systematic Withdrawal

Business / Taxes / Systematic Withdrawal: Systematic withdrawal is a method of receiving income in regular installments from your mutual fund accounts, retirement plans, or annuity contracts. Generally, you decide how much you want to receive MORE

Thought Withdrawal

Science / Psychiatry / Thought Withdrawal: delusional belief that thoughts are being removed MORE