Final answer:
A hardship withdrawal under the safe harbor rules for retirement plans can be made for all of the following reasons except for the purchase of a new car.
Step-by-step explanation:
A hardship withdrawal under the safe harbor rules for retirement plans can be made for all of the following reasons except for the purchase of a new car(d).
A hardship withdrawal is a distribution from a retirement plan that allows individuals to withdraw funds due to immediate and heavy financial need. The safe harbor rules provide a list of specific reasons that qualify as such financial need.
Examples of acceptable reasons for a hardship withdrawal under the safe harbor rules include college tuition for the next 12 months (a), purchase of the principal residence (b), and medical expenses (c).