• If you are under the age of 59.5 and are experiencing financial hardship, you can withdraw funds from your retirement accounts without incurring the usual 10% penalty.

  • However, not all hardships fit and you are still liable for income tax on withdrawals.
  • Keep in mind that you will not be able to return the funds to the account if and when your financial situation improves.
  • Consider other hardship withdrawal alternatives, including a substantially equal periodic payment plan (SEPP).