How Should One Write a Hardship Withdrawal Letter?

How Should One Write a Hardship Withdrawal Letter?

How Should One Write a Hardship Withdrawal Letter?

Writing a hardship withdrawal letter for the 401(k) requires an understanding of the requirements of hardship withdrawal. Relevant documents must be attached as evidence of your claim. The letter should be one page long, two at the most.

  1. Understand the hardship withdrawal criteria

    The approvable criteria for early withdrawals include medical care, costs related to purchasing a principal residence, tuition and educational expenses, housing expenses, or funeral expenses.

  2. Correctly format the letter

    The letter should begin with your name, full address, phone number, e-mail address and the account or loan number associated with your 401(k) plan. The recipient's full name should be correctly spelled. You should be able to gain this information through your HR department or your broker.

  3. Draft your letter

    The body of the letter should clear explaining your circumstances. Any documents to be sent with the letter should be referenced, as well as a statement dictating that withdrawing money from the 401(k) plan is your only option. Specify the amount of money needed from your 401(k) account, and include relevant dates.

  4. Edit the letter

    After the first draft, edit the letter to around one or two pages. Remove filler, and attempt to keep only important information. Before sending, be sure that your account number is on every page, make copies of your attachments and date the letter.