Question

A hardship withdrawal under the safe harbor rules for retirement plans can be made for all of the following reasons EXCEPT?

a. College tuition for the next 12 months.
b. Purchase of the principal residence.
c. Medical expenses.
d. Purchase of a new car.

Answer 1

A hardship withdrawal under the safe harbor rules for retirement plans can be made for all of the following reasons except for the purchase of a new car.

Step-by-step explanation:

A hardship withdrawal under the safe harbor rules for retirement plans can be made for all of the following reasons except for the purchase of a new car(d).

A hardship withdrawal is a distribution from a retirement plan that allows individuals to withdraw funds due to immediate and heavy financial need. The safe harbor rules provide a list of specific reasons that qualify as such financial need.

Examples of acceptable reasons for a hardship withdrawal under the safe harbor rules include college tuition for the next 12 months (a), purchase of the principal residence (b), and medical expenses (c).