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The 401k hardship rule tuition withdrawal refers to going to school using your retirement money. If you plan to go to school, using your retirement account to help might be a good deal. Take a look below for more information. What’s a 401k? You probably already know about 401k’s since you found this article. Just in case, a 401k is a retirement account that you can put money into through your employer. You can then withdraw this money after you retire to live on. If you have certain hardships, you can access the money sooner. I’ll explain a few ideas about the 401k hardship rule tuition withdrawal, specifically for paying for college tuition and related expenses with this money. You can only withdraw from a 401k if you have deposited money into it. Some employers will match your contributions or deposits with some of their own money, helping yours to grow fas top college scholarships for high school seniors ter. Usually these added deposits aren’t yours until a few years after you get the job. You can refer to that as vesting or how long it takes to become vested. The money you put in is always yours, unless your investments lose value. The Basics of Hardship Withdrawals The IRS has a bunch of categories for taking money out classified as approved hardships. The categories include medical care, buying a house, preventing foreclosure or eviction, some types of damage to your house, funeral and burial expenses, and educational expenses for post secondary expenses for the next 12 months of school. Here is the simple explanation of the 401k hardship rule tuition withdrawal: Payment of tuition, related educational fees, and room and board expenses, for the next 12 months of post-secondary education for the employee, or immediate family (spouse, children or dependents).