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Hardship Withdrawals




Phone:  800-547-7754


Monday thru Friday

7:00am to 9:00pm CST



Phone:  800-967-9948


Monday thru Thursday

7:30am to 5pm CST

Friday 7:30am-3pm CST

A hardship withdrawal is an optional plan provision that allows participants to take a withdrawal of contributions upon proof of certain financial hardships. The following are IRS-approved reasons for hardship withdrawals:

  • Purchase (excluding mortgage payments) of a participant's principal residence.

  • Payment of college tuition and related educational costs such as room and board for the next 12 months for the participant, their spouse, children, dependent(s), or primary beneficiary if permitted by the plan.

  • Payments necessary to prevent eviction or foreclosure on the participant's principal residence.

  • Unreimbursed medical expenses incurred or necessary for the medical care described under the Internal Revenue Code (IRC) for the participant, their spouse, dependents, or primary beneficiary if permitted by the plan.

  • Burial or funeral expenses for a participant's deceased parent, spouse, child, dependent, or primary beneficiary if permitted by the plan.

  • Certain expenses for repairing damage to your primary residence that would qualify for casualty loss deduction under IRS Code section 165. The event that caused the damage doesn't have to be a federally-declared disaster, but it must qualify for the casualty loss.

  • Certain disaster-related expenses (including loss of income) incurred by the participant due to a disaster declared by the Federal Emergency Management Agency (FEMA) under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, Public Law 100-707 and eligible for individual assistance. Your principal residence or place of employment must be in an area identified for individual assistance by FEMA.

Hardship withdrawals are only allowed from participants' vested account, and only one distribution is permitted per Plan Year.

For more information regarding hardship withdrawals, or to initiate a hardship withdrawal, log onto the Principal portal at with your personal log-in information and navigate to your 401(k) account dashboard and select "My Options".

401k loan or withdrawal - my options.jpg
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