Society For Human Resource Management (SHRM) Certified Professional Practice Exam

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Study for the SHRM Certified Professional Exam with flashcards and multiple choice questions. Each question includes hints and explanations to help you understand key HR concepts. Prepare for your certification with confidence!

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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

The correct answer is: 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.