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I submitted a request for a hardship withdrawal for funeral expenses and medical expenses for my wife. I had the funeral receipt but the medical bills just trickle in. I had to resubmit a couple because they didn't submit them to the insurance company. So when it was close to the 90 days I submitted my request. I sent in all the documentation requested on the site where I requested the withdrawal but got a message on the website and a letter in the mail stating I needed more documentation.
So death certificate and tax returns were sent. Some of the bills didn't have a detailed enough explanation of services for them so I was told I would need a detailed EOB. I was not going to be able to get those in time and send them in before my request expired so I was prepared for those to be denied. I called the next day to make sure they had gotten all my documentation and was told they did and that it would take 3-5 business days for them to review. That was a Friday. So the next week went by and I didn't hear anything.
I called today on the 10th business day and was told they tried to contact me the previous week to tell me that I was going to be eligible for about $3, 000 less than I had submitted and that I needed to agree to that on a recorded line. I said OK I agree to that, it's what I expected. They then said that my request had expired and that I would need to submit a new request. I looked through my phone records and found a call from an unknown number from the previous week and checked it against the numbers on the website and it was one of them. I said no message was left, no message on the website, no email, no letter? They first said you only have 1 or 2 days to get back to them. They then said it was a 3 day grace period. I said how in the world would I know to get back to you without you leaving a message? They said they could not leave a message due to privacy concerns. So again how was I supposed to know to call you back? They said there was nothing they could do. I would have to resubmit my request. I tried to explain to them that I can not because my largest bills (ambulance, ER, ICU and funeral) are all over 90 days old now. I just can't understand. When I submitted the request I got a text message, a message on the website and email but when my request was approved the notice I get is a random call from an unknown number with no message. The next hardship withdrawal they get from me will be to try to stop the foreclosure on my house.
Thank you Vanguard you are some wonderful people.
Tried to get a hardship withdrawal for sons tuition last year. Took three rounds of docs and 3 hours on hold. Trying again in 2022, so far I've sent in docs, told more were needed, after 90 min on hold. Sent in the additional docs, told more were needed, currently on hold for...100 minutes. All this to access MY money, and to top it off the customer service rep wasn't even in the USA. Horrible service. Just Horrible.
The hardship withdrawal process with Vanguard is a total NIGHMARE. They promote an idea of a hardship withdrawal for numerous reasons, yet its an illusion that you can choose the amount you want to withdraw…the amount you ultimately NOT what you think……they decide this for you and its NOT up to you. This is YOUR RETIREMENT MONEY, yet they dictate how much at the end. It’s a bait and switch process.
The painful process begins with the documents they request. It’s a run around. You will send them what they need but to extend the torture of the process, the “review team” will communicate via the system vague messages. Mind you, each time you send documents via their antiquated system, they will need 3 business to obtain and review. They “claim” they will alert you via the system, in which you will receive an email or text, that an update is available. Not true, as I finally got my first email last night after weeks of this back and forth.
When you call to rectify, they request other documents because apparently its not what they are looking for. Then the specific details the need are not on the documents sent. The same documentation is sent and accepted, then other issues arise which they could have raised earlier. They are very cryptic about the “reason” as to why they are not releasing the funds because of a clause in the document in the loan estimate stated; the lender was shocked to learn when I explained the issue, in which was not true. Then apparently, they can only offer a lesser amount because the IRS has imposed a limitation of what we can withdraw, when that was never mentioned upfront. More to come on this as they cannot offer an explanation and I am to just accept what they are proposing.
The torturous waiting period after each document is reviewed, only prolongs the process. Updates can only be sent by regular mail or fax. Who uses faxes anymore?!?!? No emails accepted.
The “Review Team” cannot be contacted directly, nor will they make the effort to contact us directly for a discussion to help accelerate the withdrawal. The “review” process is providing comments via the system, that an agent obtains when we call in for an update. They will read of a script and provide different updates. I’ve called 3 times in one day and have gotten different reasons as to why they cannot process my withdrawal. Apparently, these conversations are recorded for quality purposes but clearly, it’s pointless as I’m about to lose purchasing a house due to their garbage process.
Seems like they purposely generate vague commentary they call updates that DO NOT help us, but instead help them to extend the process for as long as they can, to NOT release YOUR MONEY. Whether it’s retirement funds locked up for the future, those are still my funds that they will do everything in their power to hold on to. A simple call from their review team would help towards resolve. This has been a world of pain for the past 3 weeks. I don’t think I’ll be able to close on my house. Thanks to Vanguard.
Sounds way too familiar! They should be ashamed of themselves getting a kick out of preying on people who need their OWN MONEY!…My daughter is in liver failure and the rep was heartless and actually hung up in my face! I have been working on getting my money for almost a month now and I’m struggling financially with medical bills! My previous employer used a retirement company that asked virtually no questions…They just processed the request and released the money that did not belong to them. I think at this point the Vanguard staff in the “Withdrawal” department are intentionally making things extremely difficult for people who are requesting access to their retirement funds. It should simply NOT be this difficult to access money that belongs to me. …..Class Action Lawsuit?
The hardship withdrawal process with Vanguard is a total NIGHMARE. They promote an idea of a hardship withdrawal for numerous reasons, yet its an illusion that you can choose the amount you want to withdraw…the amount you ultimately NOT what you think……they decide this for you and its NOT up to you. This is YOUR RETIREMENT MONEY, yet they dictate how much at the end. It’s a bait and switch process.
The painful process begins with the documents they request. It’s a run around. You will send them what they need but to extend the torture of the process, the “review team” will communicate via the system vague messages. Mind you, each time you send documents via their antiquated system, they will need 3 business to obtain and review. They “claim” they will alert you via the system, in which you will receive an email or text, that an update is available. Not true, as I finally got my first email last night after weeks of this back and forth.
When you call to rectify, they request other documents because apparently its not what they are looking for. Then the specific details the need are not on the documents sent. The same documentation is sent and accepted, then other issues arise which they could have raised earlier. They are very cryptic about the “reason” as to why they are not releasing the funds because of a clause in the document in the loan estimate stated; the lender was shocked to learn when I explained the issue, in which was not true. Then apparently, they can only offer a lesser amount because the IRS has imposed a limitation of what we can withdraw, when that was never mentioned upfront. More to come on this as they cannot offer an explanation and I am to just accept what they are proposing.
The torturous waiting period after each document is reviewed, only prolongs the process. Updates can only be sent by regular mail or fax. Who uses faxes anymore?!?!? No emails accepted.
The “Review Team” cannot be contacted directly, nor will they make the effort to contact us directly for a discussion to help accelerate the withdrawal. The “review” process is providing comments via the system, that an agent obtains when we call in for an update. They will read of a script and provide different updates. I’ve called 3 times in one day and have gotten different reasons as to why they cannot process my withdrawal. Apparently, these conversations are recorded for quality purposes but clearly, it’s pointless as I’m about to lose purchasing a house due to their garbage process.
Seems like they purposely generate vague commentary they call updates that DO NOT help us, but instead help them to extend the process for as long as they can, to NOT release YOUR MONEY. Whether it’s retirement funds locked up for the future, those are still my funds that they will do everything in their power to hold on to. A simple call from their review team would help towards resolve. This has been a world of pain for the past 3 weeks. I don’t think I’ll be able to close on my house. Thanks to Vanguard.
I'm going through the exact same [censored] with them for a medical hardship withdrawal. It's so demoralizing. The are trying to run out the clock.
I had almost the exact same experience. Vague descriptions of documents, request for additional documents, motorized documents. Ultimately, vanguard had made a decision before I even sent in my application. The answer is always “no” because they are in a position of power and don’t want to pay out money that hardworking people have invested. It’s shameful and disgusting. I’m sorry for what you went through. Vanguard is the worst.
Very same situation, I applied for a hardship withdrawal on July 30th for $900. Called them a few days later to check on status and was advised I was only missing a signature, ok no problem, faxed them the signature, that Friday (4 days later), I get a denial via text, I call them that Monday, now I’m missing an itemized bill (other rep didn’t mention this), fine I sent the form, 4 days later I get another denial saying now I’m missing the explanation of benefits, smh. Ok sent that, 4 days later I get another denial, saying I’m missing another form and signature, sent that, that following Friday (keep in mind we’re a month in now) I get a denial again saying they can’t approve it because it’s less than the $1000 limit. Not one rep told me that was a requirement, I bent over backwards to send the form and signatures for a month, I’m pretty sure they knew the amount from July 30th when I initiated the withdrawal but they continued to have me send various documents.
So Sept 5, I contact them, and they advise me to just reapply and they will copy all the forms over to the new withdrawal, confirmed on sept 7th everything was there and it’s processing, well today (sept 12) I again received a denial stating they don’t have proper documentation. Vanguard is a complete train wreck of a company and i really hope my employer switches 401k companies, they are extremely unprofessional and do nothing to help the customer with THEIR OWN MONEY.
Sounds way too familiar! They should be ashamed of themselves getting a kick out of preying on people who need their OWN MONEY!…My daughter is in liver failure and the rep was heartless and actually hung up in my face! I have been working on getting my money for almost a month now and I’m struggling financially with medical bills! My previous employer used a retirement company that asked virtually no questions…They just processed the request and released the money that did not belong to them. I think at this point the Vanguard staff in the “Withdrawal” department are intentionally making things extremely difficult for people who are requesting access to their retirement funds. It should simply NOT be this difficult to access money that belongs to me. …..Class Action Lawsuit?