MMC Benefits Handbook
Financial Hardship Withdrawals
If you have already made or applied for the maximum in-service withdrawals, you may request a financial hardship withdrawal, subject to the conditions described below:
Type of withdrawal
Reason for withdrawal
How to request/documentation required
Financial Hardship
If you have already withdrawn all amounts available from all plans within the Marsh McLennan controlled group, you may apply to withdraw your before-tax contributions, transferred elective deferral contributions and associated earnings.
The Internal Revenue Code requires that all other available withdrawals from tax-qualified plans of the Marsh McLennan controlled group be taken first.
You must meet one of the conditions below:
Complete the Financial Hardship Withdrawal Form and attach one of the items listed below as appropriate. As instructed on the form, you must complete the "Reason for Withdrawal" section of the request form, showing that you cannot obtain the money you are requesting from other sources. The Financial Hardship withdrawal will be limited to the amount you need to alleviate the hardship, plus Federal and state income tax withholding. The Financial Hardship withdrawal may not exceed the portion of your vested account balance which is not being used as security for a loan.
  • Unreimbursed medical expenses for you or your spouse or dependents.
  • Copies of the medical bill(s), and your explanation of benefits statement(s)
  • Purchase of your primary residence.
  • A signed copy of a purchase and sale agreement. If you need the withdrawal to cover closing costs, you must also provide a Loan Estimate (an estimate of the charges that you will be required to pay on the closing of your loan) from a lender.
  • Payment for Post-secondary education for you or your spouse or dependents for the next 12 months.
  • A copy of tuition bill(s) from the Bursar's office showing all credits (e.g., scholarships, financial aid, student loans, etc.) and other school-related expenses.
  • Need to prevent eviction from or foreclosure on your principal residence.
  • A copy of the eviction or foreclosure notice, or a letter from your landlord. The notice or letter must state the amount that you owe. A notice to collect unpaid taxes will only qualify if you have documentation of the local tax authority threatening to commence a foreclosure proceeding on your property.
  • Payment for burial or funeral expenses for deceased parent, spouse, child, or dependent.
  • A copy of the death certificate and mortuary bill.
  • Payment of expenses for the repair of damage to your principal residence caused by fire, storm or other casualty.
  • A copy of the repair bill, estimate or signed work order for the repair, or a copy of IRS Form 4684.
  • Payment of expenses or other losses (including loss of income) incurred by you on account of a disaster declared by the Federal Emergency Management Agency (FEMA), provided that your principal residence or principal place of employment was located in an area designated by FEMA for individual assistance with respect to the disaster.
  • You will be required to complete a FEMA Disaster Certification in the Financial Hardship Withdrawal Form.
You cannot use a Financial Hardship Withdrawal to repay a loan or purchase luxury items.
The hierarchy of money types for Financial Hardship Withdrawals is as follows:
  • post-86 after-tax contributions*
  • Company matching contributions*
  • Special Company Contributions**
  • before-tax contributions including catch-up.
* Note that you must obtain all available in-service withdrawals (including, but not limited to, the Employer Withdrawal and After-tax Withdrawal) prior to requesting a Financial Hardship Withdrawal. If, as a result of the timing of payroll processing, new Company matching contributions and/or after-tax contributions are remitted to your Plan account immediately prior to the payment of your Financial Hardship Withdrawal, such contributions will be included in Financial Hardship Withdrawal based on the hierarchy above.
** This account may pertain to employees that transferred along with their Marsh & McLennan Companies 401(k) Savings & Investment Plan accounts from Marsh McLennan to MMA.
Effective January 1, 2019, the amounts available for your Financial Hardship Withdrawal will include any earnings on your pre-tax contributions, including post-1988 earnings. In contrast, for any Financial Hardship Withdrawals obtained prior to January 1, 2019, the amounts available for the withdrawal did not include any post-1988 earnings on your pre-tax contributions.
To obtain the vested amounts available for Financial Hardship Withdrawals, go to Colleague Connect ( Select Pay & Benefits, and click My Pay & Benefits, select Transamerica under Savings & Financial Planning or call HR Services at +1 866 374 2662 to hear the amount available for withdrawal.
Within each in-service withdrawal category, withdrawals will be paid from the various investment funds on a pro-rata basis.