It used to be that after a hardship withdrawal, your employer could prevent you from making any contributions to that account or another. That is no longer allowed, however, since January 1st, 2020. Withdrawals from a 401(k) are subject to taxes and are included in gross income, resulting in more taxes paid when you file next. In addition, the money isn't paid back as it would be with a loan, so you are permanently down that amount from your retirement savings if you withdraw early.