Qualified retirement plans may or may not contain language that allow for "hardship" distributions. There is no need for IRAs to contain parallel language because participants may withdraw their funds at any time.
Regardless, there would not be a waiver of the IRC premature distribution penalty unless the distribution met specific criteria applicable to the participant, not the rest of the state. Examples would be disability, significant medical expenses, unemployment benefits, etc.
Generally, when customers come up with stuff like this it's a good idea to ask for their source and tell them you will be glad to investigate further when they provide it...chasing rabbits is tiring.
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.