Can I use my 401k for eviction? PLEASE HELP EMERGENCY!?

Question

My boyfriend lost his job. He has nearly $900 in his 401K. It's with Omaha Mutual. We tried online to find a way to use that $ to avoid eviction (coming up quick on the 24th of July!) We thought we could apply for hardship. We called them and they said no not unless you die or are fired. He explained he was fired. She said on here the job said you were let go mutually. The employer didn't choose to allow for hardships. She said there was nothing we can do!

( when I looked this up I found an old article from Nov 07 in Business week saying you can still do this with proof of eviction faxed in even though the employer didn't choose the hardship option)

Please help!!!

Answer 1

You can cash it out, but you'll pay about half in taxes and fees. If you're getting evicted on the 24th, you guys have known about this problem for a very long time.

Anybody reading this... here's a reason to always have an emergency account.

Answer 2

it's not if he was fired, let go mutually or anything else..if he was seperated from service (no longer employed) for any reason at all then he can take a distribution.    If you're not employed at the firm then you don't have to have a reason you just have to have a termination date in the system.    That being said, I hope you both have new jobs because $900 will really be only $720 and that won't pay rent for very long.

----  edit

If this job that he was laid off from is not a union job then there is no minimum.  If he is no longer working for the company then he is entitled to a distribution of his full vested balance.  If it was a union job and he got another job with a different company that sponsors the same union 401k plan then it's a diff story altogether.  In that case then your hardship reason is sufficient for a withdrawal.

Call them back and tell them you want to take a distribution of his vested balance as he is no longer employed by the company.   Do no mention hardship withdrawal or anything else.  Be very specific and use the word distribution and not withdraw or withdrawal.   Also your boyfriend should ask his former employer for a copy of the Summary Plan Description.  This will provide him in basic laymans terms the plan's distribution rules.  Bring that information back on here and reask the question providing their reply and the language from the SPD.  I'll respond to the revised question with the course of action available to you.  

Hope this gets you through.