Can I make monthly withdrawals from my 401(k) account due to financial hardship?

I am 56 years old and currently unemployed and may soon need to consider a hardship withdrawal from my 401(k) account. I anticipate that I'll need a partial sum to pay off outstanding loans and credit card debts totaling approximately $50,000. Can I then make monthly withdrawals from the balance in order to cover monthly expenses if needed?

401(k)
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July 2018

The short answer is it depends on if your plan allows it.  You can find out by contacting the plan provider or looking in the Plan Documents.  Some plans may allow for withdrawals or loans where others will not.  I would first look to see if you can take a loan.

You also have the option of rolling your account over into an IRA and taking a distribution if the plan doesn't allow it.

*Keep in mind that distrubtions will be taxable and you will also be subject to a 10% Early Withdrawal Penalty from the IRS

July 2018
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