Question

What if my dad took $10000 from his 401k to help me from losing home to forclosure? Is that a hardship?

The home is under my name and Im not his dependent.

Employee

Unfortunately, taking a 401(k) distribution, to avoid foreclosure does not qualify for the hardship exemption to avoid the 10% penalty.

However if your dad was over 59 1/2 on December 31, 2016, or separated from his job after age 55, the 10% penalty can be avoided.

1 reply