Is it a crime to lie in taking out 401k hardship withdrawal | 401k Questions

Question

Asked 5/11/2010

Is it a crime to lie in taking out 401k hardship withdrawal

For instance my 401k states that I can take out a 401k hardship withdrawal for death, education and medical expenses. I need my money so it states that only an invoice needs to be sent to take out for a funeral expense. This is easy to make up, can they do anything if they found out I lie. Do they research my request?

Thanks

Share | Abuse

Post Response

Answers

Answer 1/2 - Submitted 5/12/2010

Although the odds are against the IRS finding out, if you were ever audited you could be criminally prosecuted. Not worth the risk of Federal prison, damage to reputation, career, and long-term impact to your family.

Share | Abuse

Answer 2/2 - Submitted 5/12/2010

You can't just offer to pay for the homeless guy on the street's funeral. Which family member are you going to claim died that has not?

That level of fraud may get you jailed, as it's obviously not simply an oversight but intentional. Just pay your 10% penalty and be done with it.

Share | Abuse

Answer This Question Now

Type your Answer in the box below and post your answer.

Learn more about how this works

401k Related Topics

Related Questions (Ask a New Question)

Will i have to pay taxes on money paid to me after my divorce

I recently got divorced and part of the agreement was i was to recieve money for my 1/2 of equity in a home me and my now ex husband were buying.he kept hte home and i had ot relocate will i have to pay taxes on the money i recieved.i will also get 1/2 of his 401k as he will mine it is to be set up...

See Answers

No income, but deductions

I was out of work for the entire year of 2007. i did not collect any unemployment. even though i have no income to report, i do have deductions and i have in the past itemized deductions. how do i file and claim deductions since i have no income to report? should i withdraw from my 401k in order...

See Answers

Additional income

I need to know if accept a payment from my after tax contributions out of my 401k, if it will cause me to pay taxes? the amount is $14,200 approx. how do i figure that out?

See Answers

Related Questions

Will i have to pay taxes on money paid to me after my divorce

I recently got divorced and part of the agreement was i was to recieve money for my 1/2 of...

See Answers

No income, but deductions

I was out of work for the entire year of 2007. i did not collect any unemployment. even...

See Answers

Additional income

I need to know if accept a payment from my after tax contributions out of my 401k, if it will...

See Answers

401k withdrawal

Can you withdraw funds from a 401k at any time due to a terminal illness?

See Answers

401k reduction of wages

Question: in the past the 401k contribution reduced all taxable wages dollar for dollar...

See Answers

Taxes and penalties on 401k early withdrawal for new home

If i withdraw my 401k to purchase a house would i still be subjected to the 10% penalty and...

See Answers

See more 401k questions

Advertise on this Site