Considering a Hardship Withdrawal? How to Avoid Being Convicted of Perjury

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A recent legal case involving a prominent lawyer, Marilyn Mosby, exposed what happens when someone lies on their application to make a hardship withdrawal from a retirement account. The case also revealed that taking out a retirement withdrawal under false pretenses can result in a charge of perjury with legal penalties and possibly even jail time.

In this case, the lawyer was convicted and received a penalty of home confinement for a year. She has since appealed for dismissal of the charges, but still awaits the court’s decision.

Retirement Plan Money Is Designated for Use in Retirement

Even though you put your money into a retirement fund for years, and though sometimes situations create an urgent need, the permissible reasons are controlled by law. The primary purpose of a 401(k) or an IRA plan is that the money be used in retirement.