What is a Hardship Withdrawal?
A hardship withdrawal is a withdrawal approved by the Office of Student Support as a documented event or serious illness that is beyond the student’s control and prevents the student from continuing or performing successfully in the semester. Military callups are also considered to be in the hardship withdrawal category. It is expected that the student will withdraw from all courses for the semester. If you believe you qualify for a hardship or military withdrawal and can provide documentation, contact Student Support Services – 706-542-8220. For more information about the University’s Withdrawal Policy, see http://www.bulletin.uga.edu/bulletin/ind/withdrawal1.
If you are currently working for the YMCA and have made tax-deferred contributions, you may withdraw these contributions if you have a financial hardship. The law defines a financial hardship as: • Medical expenses incurred, or to obtain medical care for yourself or for your dependents • Purchase of your primary residence • Tuition payments for the next 12 months of college or graduate school for yourself or for your dependents • To prevent eviction from or foreclosure upon your primary residence • Payments for burial or funeral expenses for your deceased spouse, parent, child or dependent • Expenses for the repair of damage to your primary residence that qualify for a casualty deduction**A casualty deduction is a deduction from taxes under Section 165 of the Internal Revenue Code. It generally occurs if someone has a loss of at least $100 due to a casualty which is not covered by insurance. Normally the loss must exceed 10% of their adjusted gross income to be deductible, but this 10%
A hardship withdrawal is a type of withdrawal option in some 401(k) plans. As the name implies, if certain financial hardships exist for a plan participant, the participant will be able to take money out of their retirement plan. A hardship withdrawal provision is an optional feature in 401(k) plans, so not all plans will have them. The options for taking money out of a retirement plan are limited; so many companies include a hardship withdrawal feature as an additional method for participants to access their money. The logic behind including the feature is that more employees will participate in the plan if the plan allows them to withdrawal money for financial problems. The rules governing hardship withdrawals are generally comprehensive and strict. When 401(k) plans do include a hardship withdrawal feature, they will follow either the Facts and Circumstances or the Safe Harbor set of hardship rules. The Safe Harbor rules require that a participant must meet specific criteria in orde
A hardship withdrawal is a distribution that can be given from a retirement plan if you have no other means to accommodate a financial hardship. In order to be eligible for a hardship withdrawal your plan must first allow for hardship withdrawals. See your Summary Plan Description to see if your plan allows for hardship withdrawals. Second, if your plan allows for loans in your retirement plan, you must take the loan first before you can qualify for a hardship withdrawal.
A student who is unable to complete a course due to hardship may petition for a late course withdrawal after the stated deadlines. Hardship is considered to be an incapacitating injury or illness requiring extensive recuperation or a significant personal emergency such as death in the immediate family. Verification of the hardship is required. Petitions for a late course withdrawal on the basis of hardship are available through the Student Life Office and must be submitted by the last day of the week prior to finals.
