Many people, at one time or another, fall on financial hard times. Unexpected medical bills, lost jobs or other events can lead to financial stress. You might elect to take a hardship withdrawal from your IRA to help you through these tough times. If your plan allows, consider taking a hardship withdrawal from your IRA.
Instructions
1. Check that your particular hardship meets the criteria for a hardship withdrawal offered by your IRA. Some plans, for example, will allow for a hardship only for medical expenses, while others might include college tuition payments or other financial needs.
2. Submit a detailed explanation of your financial hardship to your plan. Provide whatever proof your IRA requires to support your hardship claims.
3. Decide how much money you will need to withdraw from your IRA to satisfy your hardship. A limit is usually set as far as how much you can withdraw from your IRA. Determine if the most you can withdraw will be enough to help you in your particular situation.
4. Consult with your IRA plan representative or a financial or tax adviser about taking a hardship withdrawal prior to making the request. Know all the details of such an action before finalizing the transaction.
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