Qualified Distributions

• To make a qualified distribution from a Roth 401(k), an employee must meet certain conditions, according to the Internal Revenue Service (IRS). He is eligible to withdraw funds from a Roth 401(k) after he turns 59½ or becomes disabled. In addition, his beneficiaries can also withdraw funds after his death without penalty.
  
  

Early Withdrawals

• If an employee does not meet the standards for qualified distributions, the withdrawals from a 401(k) qualify as early withdrawals. The IRS applies a 10 percent tax to early withdrawals.
  
  

Hardship Withdrawals

• Certain hardships may exempt individuals from early withdrawal penalties. According to the IRS, these hardships may include significant expenses related to medical fees, new home purchases, foreclosure prevention and tuition payments.