Catherine Posted March 16, 2010 Report Share Posted March 16, 2010 Two different clients, two questions. 1. Loan documents on refi note 0.25% paid as points at closing (not rolled into loan). Nothing on 1098 in the "points" box from that lender. Can I assume that closing documents are more likely to be accurate than the 1098? 2. Another client had her apartment's building burn down. She wants to know if there is a hardship withdrawal from 401k for this type of loss, and I can't find one - she escaped relatively unscathed; it's just all her stuff that's gone. Anyone out here know of something I'm missing? I know about casualty loss rules -- but she wants $$ in hand, not a deduction (although that will help too). Thanks as usual. Catherine Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 16, 2010 Report Share Posted March 16, 2010 Shooting from the hip, Catherine, I think that mortgage companies only report points on original mortgage, not on refinances because the points on a refinance have to be amortized over the life of the loan. Also, a hardship withdrawal from a 401(k) should be defined within the plan documents and refers to the ability to withdraw the money without a separation from service. It will still be subject to taxation and penalties for premature distribution even if the plan document has a provision allowing her to make the withdrawal as a hardship. Someone else might be more knowledgeable, but this is my opinion for what it is worth. :dunno: Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted March 17, 2010 Report Share Posted March 17, 2010 Also, a hardship withdrawal from a 401(k) should be defined within the plan documents and refers to the ability to withdraw the money without a separation from service. It will still be subject to taxation and penalties for premature distribution even if the plan document has a provision allowing her to make the withdrawal as a hardship. Someone else might be more knowledgeable, but this is my opinion for what it is worth. From what I have read you are correct. The hardship withdrawal from a 401 (k) is from within the plan. There are very few exceptions to the penalty on the withdrawl, hardship is not one of them at least wise I haven't been able to find it. Deb! Quote Link to comment Share on other sites More sharing options...
Catherine Posted March 17, 2010 Author Report Share Posted March 17, 2010 From what I have read you are correct. The hardship withdrawal from a 401 (k) is from within the plan. There are very few exceptions to the penalty on the withdrawl, hardship is not one of them at least wise I haven't been able to find it. Deb! Thanks Deb & Gail -- it's what I'd figured but before responding I thought it would be good to check with others. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 17, 2010 Report Share Posted March 17, 2010 Hardship is not an exception to the penalty for early withdrawal. and points on a refi are never on the 1098. Quote Link to comment Share on other sites More sharing options...
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