Plan Sponsor in-service distributions for hardship withdrawals

How do I administer Participant hardship withdrawals?

Follow these instructions to administer Participant hardship withdrawals, if available through your Plan.

When a Participant has a qualifying financial hardship (explanation below) and wishes to take a hardship withdrawal, he/she will take the following steps:

  1. Go to www.EnvoyFinancial.com and click Account Login
  2. Enter your Username, password, and select Account Holder from the drop-down menu
  3. On the top menu, select Take Money Out. (If you have not already registered on the Envoy Web Portal, you will need to do so. Otherwise, the Take Money Out tab will not appear.)
  4. Choose Loans and Withdrawals from the drop-down menu. 
  5. In the "Distribution Options - Still Employed" section, locate the row entitled "Under age 59½ (financial hardship only)". In the "Request Method" column, click the "Paper based - click for form" link to access the Hardship Distribution Request Form.


Upon receipt of the completed form, you must take the following actions as Plan Sponsor:

  1. Verify that the forms are properly signed
  2. Review the documentation provided by the Participant to verify that the request is for a qualifying financial hardship
  3. Verify that the Participant has an outstanding plan loan (if the plan allows loans, the Participant generally must first take a loan to address this financial hardship)
  4. Sign the form as Plan Sponsor
  5. Forward the signed form to Envoy via fax or email
  6. Suspend the Participant's Pre-tax and Roth contributions to the plan for a period of six (6) months
  7. Envoy will liquidate the Participant's account
  8. Envoy will deduct a distribution fee of $100
  9. Envoy will direct payment to the Participant
  10. Form 1099R will be mailed to the Participant in the January following the calendar year of the payment

Qualifying Financial Hardships:

  • Un-reimbursed medical expenses for the Participant, his/her spouse, or dependents
  • Purchase of Participant's principal residence
  • Payment of college tuition and related educational costs such as room and board for the next 12 months for Participant, his/her spouse, dependents, or children who are no longer dependents
  • Payments necessary to prevent eviction from Participant's home, or foreclosure on the mortgage of Participant's principal residence
  • Funeral expenses
  • Certain expenses for the repair of damage to Participant's principal residence