A distribution taken from a qualified retirement plan when the account owner is not otherwise eligible to take a distribution due to an unforeseen and costly life event. The plan must allow hardship distributions, and only the amounts that the employee originally contributed (excluding any earnings) and employer match and profit-sharing contributions may be withdrawn. The funds may not be re-contributed to the plan in the future, will be subject to income tax, and may be subject to a 10% penalty tax on early distributions. A few readily acknowledged hardships include medical expenses, funeral expenses, the purchase of a primary residence, and the repair of a primary residence.