Although not required, a retirement plan may allow participants to receive hardship distributions. A hardship distribution from a participant’s account can only be made if the distribution is both:
- Due to an immediate and heavy financial need.
- Limited to the amount necessary to satisfy that financial need.
A hardship distribution may only be requested for one of the following events:
- Expenses for medical care (described in Section 213(d) of the Internal Revenue Code) previously incurred by you, your spouse or your dependent or necessary for you, your spouse or your dependent to obtain medical care.
- Costs directly related to the purchase of your principal residence (excluding mortgage payments).
- Tuition, related educational fees, and room and board expenses for the next twelve (12) months of post-secondary education for yourself, your spouse or your dependent.
- Amounts necessary to prevent your eviction from your principal residence or foreclosure on the mortgage of your principal residence.
- Payments for burial or funeral expenses for your deceased parent, spouse, children or other dependents.
- Casualty expenses for the repair of damage to your principal residence.
- Payments for expenses and losses arising from federally declared disasters.
To determine if your Plan allows for Hardship Distributions, please review the Summary Plan Description accessible via your participant account at Jocelyn Pension Consulting.
After logging into your account, from your dashboard select the Forms & Reports menu and then Annual Notices, Forms & Fee Disclosures.
In the Annual Notices, Forms and Fee Disclosures window, expand the Form Group: Disclosures & Plan Documents and then select Summary Plan Description. The file will automatically download.
Hardship details can be found in Article VI, Distributions Prior To Termination.
If you qualify for a Hardship Distribution and your Plan allows for Hardship Distributions, you can find the application under Annual Notices, Forms and Fee Disclosures. Expand the Form Group: Distributions Forms and select Hardship Withdrawal Request Form. The form will automatically download.
Completed forms can be sent to firstname.lastname@example.org. Along with your form, please send a color copy of a US Government Issued ID, along with documentation supporting your Hardship request. Some examples of supporting documentation include medical bills, school bills, eviction notices. Note, documentation must equal the distribution amount requested.