A participant has requested a hardship distribution to purchase land on which to place his already existing trailer. The trailer is currently located on his parent's property and he wants to move it. Does this qualify for a principal residence hardship? He already has a home, he just wants to sit it somewhere else. I have seen other discussion regarding purchasing land to build a house in the future, but this situation is a little difference since he already has a home. Any thoughts are appreciated!

1) the 401(k) anser book includes the definition "costs related to purchase of a primary residence." It doesn't say costs of the residence itself. I'd say the land is sufficiently related.

2) The burden of proof isn't super in magnitude on the administrator to verfiy everything. It sounds like a gray area, but certainly reasonable to approve it...


I can't see this being challenged realistically - would the IRS dare to discriminate against a guy living a mobile home? I can't see it..