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From: ask@cbrma.UUCP (A.S.Kamlet)
Newsgroups: net.taxes,net.invest
Subject: Re: New penalty on 401k plan withdrawals
Message-ID: <5063@cbrma.UUCP>
Date: Fri, 5-Sep-86 17:55:46 EDT
Article-I.D.: cbrma.5063
Posted: Fri Sep  5 17:55:46 1986
Date-Received: Sat, 6-Sep-86 20:16:46 EDT
References: <2fc05008.2a75@apollo.uucp > <3095@teddy.UUCP>
Reply-To: ask@cbrma.UUCP (A.S.Kamlet(Art))
Organization: AT&T-BL, RMAS, Columbus
Lines: 23
Xref: mnetor net.taxes:567 net.invest:1177

In article <3095@teddy.UUCP> kdj@teddy.UUCP (Kenneth D. Jordan) writes:
:
:
> The 401k was advertised as a means of reducing your taxable income WITH 
> the extra eye-catcher that you would be able to remove the $$ from the 
> 401k for financial difficulties (eg. Buying a house, college expenses, ...).

Is that right?  Has anyone had experience with the IRS when trying
to remove 401K money for financial difficulties??

I've heard (but not tried it out) that it's really, really, (I mean
REALLY) hard (read: almost impossible) to have the IRS bless removing money
from a 401K for Financial Hardship.    That if you want money to
put your kids through college, you virtually have to sell almost all your
assets first, to raise the money.  Then you have to apply for conventional
loans.

Can anyone verify how easy is actually was to get the IRS's OK
when they withdrew money from a 401K for hardship?


-- 
Art Kamlet   AT&T Bell Laboratories  Columbus  {cbosgd | ihnp4}!cbrma!ask