SHRM Certified Professional Practice Exam 2025 – All-In-One Resource to Master Your Certification!

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Can Lewis withdraw from his 401K fund early due to his permanent disability?

Yes

No

Depends on his disability

Relative to his work situation

Lewis's ability to withdraw from his 401K fund early due to his permanent disability largely depends on specific circumstances related to the plan provisions and his employment situation. Generally, while the Internal Revenue Service allows for early withdrawals from retirement accounts, including 401(k)s, due to permanent disability, there may also be conditions tied to the employer's plan.

If the 401(k) plan includes provisions for hardship withdrawals for disabilities, Lewis could take advantage of this. However, factors such as whether he is still employed with the company offering the 401(k), the nature of his disability, and the specific language of the plan document could affect his eligibility. Therefore, the correct answer recognizes that these variables are crucial in determining if Lewis can withdraw funds, making it a situational response rather than a straightforward yes or no.

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