401k Fema Hardship Withdrawal 2025. You’d owe the 10% penalty for early withdrawal if you don’t qualify. New irs rules might offer some relief.
If the employer permits hardship distributions for expenses and losses related to a federally declared disaster, participants can check fema.gov/locations to determine if they are located in a disaster area. Adding a new safe harbor reason that would allow a hardship distribution to cover losses and expenses incurred on account of a federally declared disaster designated as such.