401(a) loans/withdrawals?

[kdibattista]

Coming to the good people here on the Dis to see if anyone has any experiences with a 401a. DH is employed by the township and this is the retirement plan he has. He has a good chunk in there and is fully vested. We talked to his HR department about getting a loan from the account to help fund our adoption. We were told that you cannot "borrow" from the account but there are some exceptions in which you can take a "hardship withdrawal". Unfortunately, according to them, adoption isn't one of them . It's been awhile since I talked to them and I have decided to call the company directly to see what type of circumstances they consider as hardship and see if there is any way we could qualify (I will be out of work for a few months traveling to get her with no income). I can't call til tomorrow so I just want to see if anyone else has ever had any experiences with this type of plan (because I'm very impatient ).

Thanks... and HAPPY EASTER!!!

 

[Charade]

I know I can get a loan from my 401(k) plan but perhaps the 401(a) has different rules or it's just your plan than doesn't allow loans.

 

[Dan Murphy]

The 'normal' reasons for allowing a hardship withdrawal from a qualified plan are...purchase of a primary residence, or to prevent eviction from it, or apartment; college education, tuition only, for yourself or immediate family member; or 'substantial' (IRS does not define 'substantial') reimbursed medical expenses. Ordinary income taxes, plus 10% penalty, if under age 59 1/2, would be due on the withdrawal amount. Best is to check with plan administrator for rules specific to his plan. Good wishes, and Happy Easter.

(not to be considered financial advice)

 

[kdibattista]

Thanks guys... I will post when I hear tomorrow.