Hardship withdrawals
If you have a "hardship," you may be eligible to receive a hardship withdrawal from the Plan. Additional information on hardship withdrawals will be provided at the time you request a withdrawal application. A "hardship" has the same meaning as under the hardship loan rules—namely, an immediate and heavy need resulting from one of the following:
- Expenses for medical care for you, your spouse, or your dependents;
- Costs (excluding mortgage payments) directly related to the purchase of your principal residence;
- Payment of tuition, related educational fees, and room and board expenses for up to the next 12 months of post-secondary education for you or your spouse, children or dependents;
- Payments necessary to prevent eviction from your principal residence or to prevent foreclosure on the mortgage on your principal residence;
- Payments for burial or funeral expenses for your deceased spouse, parent, children or dependents;
- Expenses (of the type that would qualify for a casualty loss tax deduction) for the repair of damage to your principal residence; or.
- Expenses or losses you incur because of a federally-declared disaster if you live or work in the disaster area.
To qualify for a hardship withdrawal, you must be an employee of the Company or an affiliate of the Company.
You must demonstrate that a hardship (as defined above) exists, and that your hardship cannot reasonably be relieved by any of the following actions (except to the extent those actions would increase the amount of your need):
- Reimbursement or compensation through insurance or otherwise
- Liquidation of your assets
- Discontinuing your pay deferrals and Roth pay deferrals
- Plan distributions (or distributions from other plans)
- Borrowing from commercial sources on reasonable commercial terms
The maximum amount you may receive as a hardship withdrawal is whichever of the following amounts is the smallest:
- The sum of the balances in your pay deferral account, Roth pay deferral account, rollover account, and Roth rollover account
- The amount which you certify is necessary to relieve your hardship (including any amounts necessary to pay any Federal, state, or local income tax or penalties expected to result from the hardship withdrawal)
You may make only one hardship withdrawal during any 12-month period.
If you have a Pre-1988 Benefit (defined in "Automatic forms of distribution for participants with Pre-1988 benefits"), to obtain a hardship withdrawal you must waive the joint and survivor form of distribution for the amount to be withdrawn and, if you are married, obtain your spouse's written consent (witnessed by a Plan representative or notary public) to the withdrawal.