BROWSE

Hardship Withdrawal

What is 'Hardship Withdrawal'

An emergency withdrawal from a retirement plan that may be subject to certain tax or account penalties. In the United States, funds withdrawn prior to the age of 59.5 are typically subject to a 10% Internal Revenue Service (IRS) early withdrawal penalty, as well as standard income taxes.

Explaining 'Hardship Withdrawal'

Hardship withdrawals from a retirement plan such as a 401(k) can't be replaced. The money that is withdrawn is permanently removed from the account, and only scheduled future contributions are permitted.

The stiff penalties and criteria for hardship withdrawals are meant to deter investors from using this option except as a last resort. The ability to have money free from future income taxes and capital gains taxes (a trait of most retirement accounts) is an extremely valuable asset, and is necessary for many people to achieve a stable retirement.


Further Reading


Linking economic hardship to marital quality and instability
www.jstor.org [PDF]
… The second issue investigated here was whether economic hardship might affect marital quality by reducing the level of positive behavioral ex- changes between spouses … Previous research does suggest that economic stress may lead to withdrawal and lack of …

Financial hardship and well-being: a cross-national comparison among the European self-employedFinancial hardship and well-being: a cross-national comparison among the European self-employed
www.tandfonline.com [PDF]
… The second issue investigated here was whether economic hardship might affect marital quality by reducing the level of positive behavioral ex- changes between spouses … Previous research does suggest that economic stress may lead to withdrawal and lack of …

Housing assets as a potential solution for financial hardship: Households' mental accounts of housing wealth in three European countriesHousing assets as a potential solution for financial hardship: Households' mental accounts of housing wealth in three European countries
www.tandfonline.com [PDF]
… The second issue investigated here was whether economic hardship might affect marital quality by reducing the level of positive behavioral ex- changes between spouses … Previous research does suggest that economic stress may lead to withdrawal and lack of …

Unemployment, financial hardship, and savings in individual development accountsUnemployment, financial hardship, and savings in individual development accounts
www.tandfonline.com [PDF]
… The second issue investigated here was whether economic hardship might affect marital quality by reducing the level of positive behavioral ex- changes between spouses … Previous research does suggest that economic stress may lead to withdrawal and lack of …

Americans' financial capabilityAmericans' financial capability
www.nber.org [PDF]
… The second issue investigated here was whether economic hardship might affect marital quality by reducing the level of positive behavioral ex- changes between spouses … Previous research does suggest that economic stress may lead to withdrawal and lack of …

Financial and Educational Hardships Experienced by BSW and MSW Students During Their Programs of StudyFinancial and Educational Hardships Experienced by BSW and MSW Students During Their Programs of Study
www.tandfonline.com [PDF]
… The second issue investigated here was whether economic hardship might affect marital quality by reducing the level of positive behavioral ex- changes between spouses … Previous research does suggest that economic stress may lead to withdrawal and lack of …

Financial Knowledge Overconfidence and Early Withdrawals from Retirement AccountsFinancial Knowledge Overconfidence and Early Withdrawals from Retirement Accounts
papers.ssrn.com [PDF]
… The second issue investigated here was whether economic hardship might affect marital quality by reducing the level of positive behavioral ex- changes between spouses … Previous research does suggest that economic stress may lead to withdrawal and lack of …

Private pensions and policy responses to the financial and economic crisisPrivate pensions and policy responses to the financial and economic crisis
www.oecd-ilibrary.org [PDF]
… The second issue investigated here was whether economic hardship might affect marital quality by reducing the level of positive behavioral ex- changes between spouses … Previous research does suggest that economic stress may lead to withdrawal and lack of …


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