Can I take a distribution while employed?

If you are over age 59.5, yes. If you are under age 59.5, you would need to meet the IRS hardship qualifications below: 

Hardship Reason	Covered Expenses & Required Documentation
Post-Secondary Education	Allowable Expenses: Tuition, fees, room and board for up to the next 12 months of post-secondary education (through a university, college, or technical school) for you, your spouse, or dependent. The amount allowable is after financial aid, scholarships, and grants are awarded. Note: Loan repayment and post-secondary education expenses for education already obtained or paid for does not qualify.  Documentation Required: Upcoming tuition bill or financial statement from the institution that details the actual costs with specific student information, fees and expenses. Document must show how much is awarded for financial aid, scholarships and grants.
Purchase of Primary Residence	Allowable Expenses: Costs directly related to the purchase of your primary residence such as a down payment or closing costs. Mortgage payments or second homes are not eligible.  Documentation Required: A purchase agreement or statement from the mortgage company, realtor, or builder detailing the amounts of the down payment or closing costs. Commonly, this information is included in a “Loan Estimate” provided by the lender. An estimated closing date should be provided.
Prevent Eviction or Foreclosure	Allowable Expenses: Amounts needed to prevent eviction from your primary residence or amounts needed to prevent foreclosure on your primary residence.  Documentation Required: Current written statement or notice from landlord, bank, or mortgage company on their letterhead detailing amounts due, necessary to prevent the eviction or foreclosure. If a written statement from the landlord is provided, you must include a copy of the lease agreement. The statement must also state they will not evict if these funds are to be received.
Health Expenses	Allowable Expenses: Cost of medical or dental expenses that are deemed your responsibility for you, your spouse, or dependent that is not covered by insurance. Note: Elective procedures, including most orthodontics, are not eligible. Documentation Required: Recent bill from your medical/dental provider identifying the portion of the expenses that are your responsibility. If upfront payment is required to obtain medical care, a statement from the provider with an estimate of the costs to the patient. Documentation should include dates of service and explanation of services provided.
Funeral Expenses	Allowable Expenses: Burial or funeral expenses for your parent, spouse, child, or dependent.  Documentation Required: Statement from funeral director or cemetery identifying services and costs together with deceased name, date of death, date of funeral or burial.
Damage to Primary Residence	Allowable Expenses: Certain expenses for the repair of damage to my primary residence that would qualify for the casualty deduction under Internal Revenue Code Section 165.  Documentation Required: A copy of receipts for repairs or materials to repair your primary residence, insurance claim form showing the amount not reimbursed through the insurance coverage (do not include expenses for repair or replacement of any other personal property). A casualty event cannot be progressive in nature.

You may also have the option to take a loan from you account as long as you have a vested balance of at least $2,000.