Question on employer 401K

[luiginj]

I am in desperate need of taking out some money from my employers 401K. I fully understand the very negative tax implications involved and future retirement problems. I cant retire for 20 more years. I will inherit my mothers house valued at 500,000 or more when she passes in 5 to 15 years. That is my retirement.

I am 49, recently married with twin sons 1 1/2 years old. So we have 1 income and I do not make enough to pay the mortgage, taxes , home equity loan we made to enlarge our small house for out two sons, and credit card debt.

My Employers plan allowed me to take a small amount to help pay for the addition to the home. They say I can take more as a hardship. One of the hardship scenarios they described were foreclosure of home.

My question is how do I prove hardship to do to take the rest of my 401K money

Thank you

 

[Innerlaner]

You need to show that without the 401k money, you will have to foreclose. You will have to pay ordinary taxes and a 10% early withdraw penalty.

You can also borrow against your 401k.

 

[luiginj]

Would a list of bills and my normal paycheck stub be enough? I'm at least $700 dollars short a month in bills. Or would I require a foreclosure notice from the bank ? I have been making the mortgage payments on time.

 

[Innerlaner]

You will have to check with your employer. Each plan document is different.