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NOTICE REGARDING
HARDSHIP WITHDRAWAL
Your 401(k) provides that at the Administrator's discretion,
the amounts that have been contributed on your behalf as 401(k)
salary deferrals may be withdrawn if you have a proven financial
hardship. Hardship withdrawals are subject to federal and state
income taxes. Under the terms of your plan, your hardship
withdrawal may not exceed the amount necessary to eliminate
the hardship. A financial obligation, which results in a hardship
for plan purposes, must meet the following criteria:
- Substantial Amount. The amount must be
substantial when you consider your salary, your personal
assets and your overall financial condition. You must also
consider the assets and financial resources of your spouse
and children. An amount will not be considered substantial
if you can pay for it from your current or future assets.
- Participant Certification. You must certify
that there is no reasonably available alternative source
of funds sufficient to satisfy the financial obligations
imposed by the event that gives rise to hardship. You should
consider all of your assets including your investments,
bank accounts, home equity loan availability, cash value
life insurance, personal lines of credit, credit card lines
of credit, amounts available from retirement plans or IRA's,
trust funds, and any other personal or family resources
that might be drawn upon. Assets of your spouse and children
(other than assets held in trust or under a uniform gift
to minors act) must be considered and ownership must be
indicated, even if those assets are not available to you.
You must limit your request to the amount which will satisfy
your immediate and substantial need (plus Federal, State
and local income and excise taxes that will be payable on
the hardship distribution itself) reduced by the previously
described assets that you have reasonably available to meet
that need.
- Insurance. The hardship expense may not
be one covered by insurance or otherwise eligible for reimbursement.
- The Event. The event that gives rise to
the hardship must be one of the events specified by the
plan and listed below.
- Medical expenses for me, my spouse, my children or dependents,
above and beyond amounts covered by insurance
- Purchase of my primary residence
- Payment of tuition and similar fees for post-secondary
education for myself, my spouse, my children or my dependents,
for a period not exceeding 12 months
- Prevention of my eviction from or foreclosure of the
mortgage on my primary residence
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