401k can be withdrawn completely while working

[Pacun]

I have had 401k in Fidelity and then it was transferred to T rowe price.  During all these years, I can only make loans or take a hardship withdrawal.  If you were buying a primary residency, you were required a loan pre-approval, a contract signed and other documentation. This year (I am turning 55 in a couple of months) the money was transferred back to Fidelity and I was able to take out up to 44K (which I did a month ago) without any questions asked.  After the withdrawal, I went back to see if any loans or money was available for me and I could see that all the monies is available to be withdrawn without any questions asked (over 100K).

Today I checked again and now I see three choices that I can use... a loan for $50K, all my money on a hardship withdrawal and "FEMA DISTRIBUTION PREAPPROVED" with all money available.

What has changed, besides my age?
I never heard of "FEMA distribution preapproved". I live in DC and we don't have natural disasters.

I understand the penalties and taxes on my actions that will be assessed when I file my 2020 taxes.

Edited March 4, 2020 by jklcpa
fix title only

[Gail in Virginia]

Even though you are not in a disaster area (and since you are in DC I would beg to differ - I think that is a HUGE disaster) you can take out money to loan to a child, parent or other dependent for their disaster in another part of the country.  I believe there is only a brief window of time that this is available, and that you are not forced to stop contributing to your 401(k) the way you ordinarily are if you take a hardship withdrawal.  I don't know all of the details. 

[Pacun]

I said natural disasters, no man made.

It is interesting that I was not asked anything about anything when I withdrew the money.

Can someone change my title from withdrew to withdrawn.