SECTION I HARDSHIP WITHDRAWAL INSTRUCTIONS CUNA Mutual Group Form

Understanding the Hardship Withdrawal Instructions

The hardship withdrawal instructions provided by CUNA Mutual Group are designed to help individuals access their 401(k) funds in times of financial need. This process allows participants to withdraw money from their retirement accounts under specific circumstances, such as medical expenses, purchasing a primary residence, or preventing eviction. Understanding these instructions is crucial for ensuring compliance with IRS regulations and maximizing the benefits of your retirement savings.

Steps to Complete the Hardship Withdrawal Process

Completing the hardship withdrawal process involves several key steps:

• Review eligibility criteria to confirm that your situation qualifies for a hardship withdrawal.
• Gather necessary documentation that supports your request, such as bills or eviction notices.
• Fill out the hardship withdrawal request form accurately, ensuring all required fields are completed.
• Submit the form along with any supporting documents to CUNA Mutual Group through the designated submission method.
• Await confirmation of your request and any additional instructions from CUNA Mutual Group.

Required Documents for Hardship Withdrawal

To successfully process a hardship withdrawal request, specific documents are required. These may include:

• Proof of financial hardship, such as medical bills or eviction notices.
• A completed hardship withdrawal request form.
• Any additional documentation as specified by CUNA Mutual Group.

Ensuring that all documents are accurate and complete can expedite the approval process.

Eligibility Criteria for Hardship Withdrawals

Eligibility for a hardship withdrawal from a CUNA Mutual 401(k) account is determined by specific criteria set forth by the IRS and CUNA Mutual Group. Generally, eligible circumstances include:

• Unreimbursed medical expenses.
• Costs related to purchasing a primary home.
• Tuition and educational fees for the upcoming academic period.
• Preventing eviction or foreclosure.

It is essential to review these criteria carefully to ensure your situation qualifies for a withdrawal.

IRS Guidelines on Hardship Withdrawals

The IRS provides guidelines that govern hardship withdrawals from retirement accounts. Key points include:

• Withdrawals must be made for immediate and pressing financial needs.
• Participants must exhaust all other options, such as loans from their 401(k) before applying for a hardship withdrawal.
• Withdrawn amounts are subject to income tax and may incur penalties if the participant is under age fifty-nine and a half.

Familiarizing yourself with these guidelines can help in understanding the implications of a hardship withdrawal.

Form Submission Methods

Submitting your hardship withdrawal request can be done through various methods. CUNA Mutual Group typically offers:

• Online submission through their secure portal.
• Mailing the completed form and documents to their processing center.
• In-person submission at designated locations, if applicable.

Choosing the appropriate submission method can affect the speed of processing your request.