Hardship Withdrawals
401(k) Hardship Withdrawals can only be requested under specific financial hardship situations. A Hardship Withdrawal is considered taxable income and will be reported to the IRS. You will not be able to put the money back into the retirement account once you withdraw it. Principal will deduct additional tax penalties from the withdrawal amount for penalties that you will owe to the IRS for withdrawing the funds before retirement age.
To request a Hardship Withdrawal log on to your account at principal.com - Select Loans and Withdrawals - Request a Withdrawal. Withdrawals can be paid out in the form of a check or a direct deposit.
Important
If you want to request a Hardship Withdrawal to be paid to you via direct deposit, please allow a minimum of 5-10 business days for processing, as this type of withdrawal is more complicated and involves additional layer of approval. Also, you cannot make changes to your Personal profile within 30 days or requesting a withdrawal to be paid out via direct deposit. If you change ANY personal information such as your password, email, etc., you will not be able to receive a withdrawal via direct deposit. You will have to wait for a check to be mailed out.
See the Summary of Plan Provisions for more details.
Confidential Consultation
If you have questions about a Hardship Withdrawal, please contact Barb Seckler, Employment Services Manager, at 407-270-1318 or barb.seckler@reliant.org for a confidential discussion of your options.
