IQVIA Benefits Handbook
HARDSHIP WITHDRAWALS
Generally, you may make a hardship withdrawal of a portion of your Employee Deferral Account, Employee Roth Deferral Account, Employee and/or Roth Catch-up Accounts, and Employee Rollover and/or Roth Rollover Accounts, if applicable, regardless of your age. This is provided the amount requested is necessary to meet an immediate and heavy financial need. You must have exhausted all other possible means of available resources, such as loans from non-Plan sources, savings accounts and liquidation of other assets before obtaining a hardship withdrawal. An immediate and severe financial reason can be one or more of the following:
  • Purchase of a principal residence (excluding mortgage payments).
  • Payment of post-secondary tuition and related fees for the next 12 months for you or an eligible dependent.
  • Prevention of eviction from your principal residence or foreclosure on the mortgage of your principal residence.
  • Payment of medical expenses that are not reimbursed through your medical plan.
  • Payments for burial or funeral expenses for your deceased parent, spouse or child.
  • Expenses for the repair of damage to your principal residence that would qualify for the casualty loss deduction under section 165 of the Internal Revenue Code (determined without regard to whether the loss exceeds 10% of your adjusted gross income).
  • In addition, hardship withdrawals may also be permitted by the IRS on a selective basis in conjunction with certain natural disasters as declared by FEMA and adopted by the Plan from time to time.
You may only withdraw the amount necessary to meet your immediate need, and documentation of your need must be provided. Call Fidelity Customer Services at 800-835-5097 to initiate a hardship withdrawal.
If your withdrawal is approved, the following rules apply:
  • You may request only the amount needed to meet your financial hardship.
  • The minimum hardship withdrawal is $1,000.
  • No hardship withdrawal amounts may be rolled over into another retirement plan or individual retirement account.
Taxes on Hardship Withdrawals
Because the Plan is designed for long-term savings, if you are under age 59-1/2, the IRS imposes a 10% early withdrawal excise tax applicable to hardship withdrawals, in addition to ordinary income tax on pre-tax elective deferrals. There are exceptions to the 10% excise tax. Tax laws that apply to plan withdrawals and distributions are complex and change from time to time. You should check with a financial advisor or accountant when deciding how to receive a payout of your account.