when does a hardship withdrawal from a 401k have to be verified.
Hardship withdrawals are subject to income tax and, if you are not at least 59Â½ years of age, the 10% withdrawal penalty. You do not have to pay the withdrawal amount back.gain, most plans do, but some don't. Check with your Human Resources department if you're not sure if your plan allows hardship withdrawal. Like a 401k loan, your employer must adhere to some very strict and detailed guidelines.