401(k) Hardship Withdrawal: Rules and Reasons
A hardship withdrawal lets you take money from your 401(k) for an immediate and heavy financial need. It is still subject to income tax and potentially the 10% early withdrawal penalty, and you cannot repay it.
What qualifies as a hardship?
The IRS defines safe harbor hardship reasons as: (1) medical expenses, (2) costs to purchase a principal residence, (3) tuition and related educational fees, (4) payments necessary to prevent eviction or foreclosure, (5) funeral expenses, (6) certain expenses to repair damage to a principal residence, and (7) expenses and losses due to certain federally declared disasters. Your plan document determines which of these reasons it allows.
The cost of a hardship withdrawal
A hardship withdrawal is not a loan — you cannot repay it. The amount withdrawn is included in taxable income for the year, and if you're under 59½, the 10% additional tax may apply unless an exception is available. You also lose the future tax-deferred growth on the withdrawn amount.
Hardship withdrawal vs loan
A 401(k) loan must be repaid with interest but avoids taxes and penalties if repaid on time. A hardship withdrawal doesn't require repayment but is taxable and potentially penalized. A loan is usually the better option if you expect to repay the money.
Frequently asked questions
What are valid hardship withdrawal reasons?
Medical expenses, home purchase, tuition, eviction/foreclosure prevention, funeral expenses, home repair, and certain disaster-related expenses — if your plan allows them.
Can I take a hardship withdrawal from a Roth IRA?
Roth IRA contributions (not earnings) can be withdrawn at any time without tax or penalty. Roth 401(k) hardship withdrawals have different rules.
Sources
Gleefund explains general retirement-account concepts and provides estimates. It does not provide financial, tax, or legal advice. See our disclaimer and methodology. Check the current IRS rules before acting.
Figures current as of 2026-09-25. Found an error? Contact us.