Hardship Withdrawals FAQ

Can I claim hardship for funeral expenses for a step-parent? Funeral expenses for a step-parent may qualify only if the step-parent was your tax dependent or listed as your primary beneficiary.

Can I use a hardship withdrawal to cover medical and funeral expenses for a parent? Funeral expenses for a parent can qualify for a hardship withdrawal and the parent does not need to be your primary beneficiary or tax dependent. However, medical expenses for a parent only qualify if the parent is your primary beneficiary or tax dependent.

Can a hardship withdrawal cover past-due tuition so I can enroll for the current semester? No. Hardship withdrawals for education expenses only cover current tuition and expenses for the next 12 months. Past-due balances are not eligible.

Does the eviction or foreclosure document need specific language about being evicted if payment isn't made? Yes. The supporting documentation must contain language stating that eviction or foreclosure will take place if payment is not made.

What documents are needed to show a family relationship for a hardship claim due to a sibling's death? You will need to provide a copy of the birth certificate for both the deceased sibling and yourself to establish the family relationship.

Can I claim a hardship withdrawal for funeral expenses for a step-child who is 26 and lives off island? No. A step-child who is 26 years old has aged out and is not considered a financial dependent, so funeral expenses would not qualify for a hardship withdrawal.

Can I use a hardship withdrawal to pay a credit card bill for last semester's tuition? No. Credit card payments are not an eligible hardship expense, and prior semester tuition cannot be covered under a hardship withdrawal.

Can I get reimbursed for an earnest deposit through a hardship withdrawal? No. Since the deposit has already been made, it is not eligible for hardship reimbursement.

Is there a time limit to claim a hardship for natural disaster damage? No. There is no specific time frame as long as you can provide sufficient supporting documentation.

Can I claim a hardship for tuition for someone listed as my primary beneficiary? Yes. If the person is listed as a primary beneficiary, their secondary education tuition expenses may qualify for a hardship withdrawal.