SCRP Qualifications for hardship withdrawals expand
As of September 1, 1998, qualifications for hardship withdrawals from the Stanford Contributory Retirement Plan (SCRP) have been expanded. Hardship withdrawals are distributions of your personal contributions to SCRP while you are still working for Stanford. Prior to September 1, the only allowable hardship withdrawal was for uninsured medical expenses. New qualifications for hardship withdrawals include:
- Making a down payment on a primary
- Preventing eviction from or
foreclosure on a primary residence;
- Paying for one year of
undergraduate tuition for you or your dependents; or
- Paying for uninsured family medical expenses.
Hardship withdrawals are subject to current SCRP rules. Stanford's contributions to your SCRP account are not available for withdrawal. As the name implies, hardship withdrawals are approved when the participant has no other source for payment of one of the above needs. Withdrawals are also subject to current federal and state income tax. In addition, under most circumstances, the IRS will impose an early withdrawal penalty of 10%.
For more information on hardship withdrawals and for application forms, call the Office of Total Compensation or SLAC Benefits Office.