Yes! You can use AI to fill out Empower Hardship Distribution Request Form

Participants often request a rounded-up number or an amount that exceeds what their supporting documents, like invoices or repair estimates, actually show. This happens when trying to cover related but ineligible costs. The consequence is that only the substantiated amount is processed, and the rest of the request is suspended for 30 days under a 'continuation,' delaying access to full funds and requiring additional follow-up. To avoid this, carefully calculate the exact amount needed based on your bills or quotes and ensure the requested figure precisely matches the proof provided.

For requests requiring the 'Source Method' or for 'Unforeseeable Emergency' withdrawals, participants must submit proof like medical bills or eviction notices. People often forget to include these documents or provide incomplete versions, which renders the request 'not in good order.' This causes significant processing delays as Empower must contact the participant for the missing information. To prevent this, create a checklist based on the form's requirements for your specific hardship reason and double-check that all required documents are included with your submission.

The plan rules dictate whether a participant can self-certify, use the summary method, or must submit full source documentation. A common error is submitting documentation for a self-certify request (where it's not reviewed) or failing to submit it for a source method request. This confusion leads to processing errors and delays. Before starting, verify your plan's specific rules on the Plan Service Center (PSC) or with an Empower representative to ensure you follow the correct procedure.

Participants sometimes apply for hardships that don't fit the strict, IRS-defined categories, such as paying off general credit card debt or buying a car. This occurs from a misunderstanding of the limited, specific reasons allowed (e.g., primary home purchase, preventing eviction, specific medical expenses). Such applications are automatically denied, wasting time and effort. To avoid this, carefully review the 'Safe Harbor' or 'Unforeseeable Emergency' reasons listed in the plan documents before submitting the form.

The rules state that a hardship distribution is a last resort and is not considered necessary unless the participant has already taken all other available withdrawals and loans under the plan. Many applicants are unaware of this prerequisite and apply for a hardship prematurely. This can lead to the request being denied until other options, like a plan loan, are utilized. Before applying, log into your account to confirm if you have any outstanding loan or withdrawal options available and use them first.

When using the 'Self-Certify' or 'Summary' methods, participants are not required to submit proof upfront but must agree to keep it indefinitely. People mistakenly believe that since they didn't have to submit the documents, they don't need to keep them. If the Plan Administrator or IRS conducts an audit and the participant cannot produce the proof, it can lead to significant penalties. To avoid this, create a dedicated physical or digital folder for all supporting documents and store it securely.

Simple data entry errors like a missing signature, leaving required fields blank, or entering an incorrect Social Security Number are very common. These mistakes render the form 'not in good order,' halting the process until corrections are made. To avoid this, carefully review every field before submission. AI-powered tools like Instafill.ai can convert non-fillable PDFs into easy-to-use forms and help prevent these errors by validating data formats to ensure all required information is present and correct.

The rules for 'Self-Certify' and 'Summary' methods explicitly limit participants to two such requests per plan year. A participant who has already made two requests may attempt a third using the same simplified method. This third request will be rejected, and the participant will be instructed to resubmit using the 'Source Method,' which requires full documentation and causes delays. It's crucial to track your hardship requests throughout the year and know that subsequent requests have stricter requirements.

The 'Safe Harbor' rules allow a hardship for costs 'directly related to the purchase' of a principal residence but explicitly exclude mortgage payments. Participants often misinterpret this and apply for a hardship to cover their regular monthly mortgage payments. This application will be denied because it's not a qualifying event. This reason is for one-time costs like a down payment or closing costs on a new home purchase, not for ongoing mortgage obligations.

If initial documentation only supports a portion of the requested amount, Empower initiates a 30-day 'continuation' period for the participant to submit more proof. People often miss this deadline due to oversight or difficulty gathering documents quickly. If the deadline is missed, the request for the remaining amount lapses, and the participant must start a completely new hardship application. To avoid this, act immediately upon receiving a continuation notice and submit additional documentation well before the 30-day window closes.