'The financial hardship provision allows withdrawals only for immediate, pressing need,' said Stone. You'll need to prove that you really need the money right now, says Jim Stone, a Chartered Financial Consultant (ChFC) and an instructor at the College for Financial Planning. To get at the money, however, you'll have to weave your way through a veritable obstacle course of regulations. So, can you access that 401k money to cover these sorts of hardships? Suddenly, the pie-in-the-sky picture of retirement seems meaningless in the face of your current problems. Then the doctor bill comes, or the tuition bill, or a late notice from your mortgage company.
After contributing for several years, it's becoming easier to imagine all of the things that you'll be able to do with that money when you retire. It can be pretty satisfying to get your 401k statement in the mail and see the good-sized balance that you've built. Emergency Access to Your 401k: Hardship Withdrawals
