So i know about the 4 or so rules for a hardship withdrawal from a 401(K) and the loans you can take out as well but why are these so restrictive on how you take out the money YOU put away in there? I mean i get its a retirement account but come on man. Like the great words from the old insurance commercial, its my money i need it now.
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The rules are set by the Government, and enforced by the IRS. When you ask “Why did Congress choose these Rules?” you’re not going to get a good explanation. “It seemed like a good idea at the time” probably doesn’t satisfy you. Some in Congress wanted no withdrawals without penalties, others wanted different “hardships” to be OK, what the law says is the result of negotiation.
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