If you have a financial hardship that satisfies the requirements of the Plan, you may request to make a withdrawal from certain of your accounts in the Plan while still actively employed. The reasons under the Plan for which you may request a hardship withdrawal include:
- Your purchase of your primary residence (excluding mortgage payments);
- Extraordinary, unreimbursed medical expenses incurred by you, your spouse, or dependents;
- Tuition, room and board, and related educational fees for the next 12 months of post-secondary education for you, your spouse, children, or dependents;
- Amounts necessary to prevent your eviction from, or foreclosure on, your primary residence;
- Funeral expenses for immediate family members; and
- Repair of damage to your principal residence resulting in a casualty loss.
Your hardship withdrawal cannot exceed the amount of your immediate and heavy financial need, including any amounts necessary to pay any federal, state, or local taxes and penalties anticipated to result from the withdrawal. In addition, you may only receive permission to make a hardship withdrawal after you have obtained all distributions (other than hardship withdrawals) then available to you under the Plan.
The minimum hardship withdrawal is $1,000. Only the portion of your account attributable to rollover contributions, the balance in your ESOP diversification account, and your employee contributions will be available for a hardship withdrawal, and the withdrawal will be made from your account in that order. Investment earnings on your employee contributions are not available for hardship withdrawal. In addition, your ESOP account and the portions of your account attributable to Company Matching contributions are not available hardship withdrawals.
You should be aware that your hardship withdrawal may be subject to an excise tax of 10% in addition to normal taxes if you are under age 59-½ at the time of the withdrawal.
Hardship Withdrawal request forms are available on the employee portal at www.myloweslife.com (My Home > Lowe's Forms > Wealth Related) or at the Plan's web site, accessible through the employee portal at www.myloweslife.com (My Wealth > Wealth Related Quick Links > 401(k) > 401(k) at ADP) or directly at www.mykplan.com, or by calling 1-877-236 5693 and speaking with a Plan representative. You will be required to submit documentation for your hardship request including a notarized statement. When you call, you'll need your Social Security Number and PIN.
If your request for a hardship withdrawal is granted, your contributions will be suspended for the next six (6) months in the Lowe's 401(k) Plan, the Employee Stock Purchase Plan (ESPP), and any non-qualified deferred compensation plans in which you participate (e.g., Benefit Restoration Plan (BRP), Cash Deferral Plan (CDP)). Additionally, during the six months following your hardship withdrawal, you may not exercise any stock options granted to you. Unless you make a change to your 401(k), BRP, or CDP deferral elections during your suspension period, at the end of your suspension period your salary deferral(s) will resume at the percentage(s) in effect when you took the hardship. Moreover, depending on the date of your hardship distribution, by taking a hardship distribution you may lose the ability to to re-enroll in the BRP or CDP for the next plan year. If you were a participant in the ESPP, you will need to enroll during the next ESPP enrollment period following your six month suspension period - you will not be automatically enrolled in the ESPP. You may not request a hardship withdrawal after reaching age 59 1/2 unless you have previously taken the one-time distribution of your entire account balance available for active employees age 59 1/2 and above.