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URL:  http://boards.fool.com/im-considering-taking-a-hardship-distribution-16301342.aspx

Subject:  Re: 401K Distribution to Pay Student Loans Date:  12/17/2001  8:31 PM
Author:  pmarti Number:  56085 of 121598

I'm considering taking a hardship distribution from my 401K to pay delinquent student loans. Does anyone have any input concerning the tax implications of this move? I know that next year I'll be able to deduct the interest and I'm aware that I'll be taxed on the distribution as regular income. Also, does anyone know if I can be exempted from the 10% penalty?

No, you will not be exempt from the 10% premature distribution penalty. See IRS Publication 575.

Phil Marti
VITA Volunteer
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