Unforeseeable Emergency Withdrawal

A withdrawal may be allowed in the event of an unforeseeable emergency which causes severe financial hardship that cannot be alleviated by any other means available.

Approval for an unforeseeable emergency withdrawal is not automatic. You must apply and provide supporting documentation. Please Contact Us to request an Unforeseeable Emergency Withdrawal Request application. Your request is subject to review and approval and is subject to IRS defined rules. 

Once you take an unforeseeable emergency withdrawal, you're prohibited from contributing to your MNDCP account for six months.


Events that MAY qualify for withdrawal

  • Sudden and unexpected illness or accident to you, your spouse, or beneficiary

  • Involuntary income loss caused by illness or layoff

  • Property loss or damage that is beyond your control that is not covered by homeowner's insurance

  • The imminent foreclosure of or eviction from your primary residence. The presence of an eviction or foreclosure does not guarantee an approval.  What was the unforeseen financial emergency that led to the eviction or foreclosure?

  • Payment for medical expenses to the extent you cannot otherwise pay such expenses

  • The need to pay for funeral expenses of a family member as defined in Section 152 of the Internal Revenue Code

  • Other similar, equally severe and unforeseeable circumstances beyond your control


Events that do not qualify for withdrawal

  • Ordinary consumer debt

  • Purchase of real estate or regular home maintenance

  • Payment of tuition

  • Purchase of or routine automobile maintenance

  • Unpaid rent or mortgage payments

  • Loan repayments

  • Personal bankruptcy (except when resulting directly and solely from illness or casualty loss)

  • Payment of income taxes, interest or penalties

  • Marital separation or divorce