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Retirement Plan Withdrawals

A retirement plan may, but is not required to, provide for hardship distributions. You may be able to withdraw up to the total vested balance of your account, minus the amount of any previous hardship withdrawals you've made. In some cases, you may not make further contributions to your retirement plan following a hardship withdrawal.

 

 

How do I take a withdrawal?

Your employer will generally require that you submit your request for a hardship withdrawal in writing—withdrawal requirements are determined by the rules of your employer’s retirement plan. To learn more about your plan's provisions for hardship distributions, log on to PlanTrac or call 800-228-8076 for assistance.

How can I use my withdrawal?

Retirement plan withdrawals may be used to pay:

  • Medical expenses
  • College tuition payments and related costs
  • Payments to prevent foreclosure or eviction from your home
  • Expenses to repair damage to your home
  • Money to purchase your primary residence
  • Funeral expenses

How much money can I withdraw?

You may be able to withdraw up to the total vested balance of your account, minus the amount of any previous hardship withdrawals you've made. In some cases, you may be penalized from making further contributions to your retirement savings plan for a certain time period after a hardship withdrawal, which will further impact your retirement savings. Make sure to check your plan rules to make an informed decision.

Will taking a withdrawal affect my taxes?

Hardship withdrawals are subject to income tax and, if you are not at least 59½ years of age, a 10% withdrawal penalty. However, unlike a retirement plan loan, you do not have to repay the withdrawal amount.


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Call us at 800-228-8076, press option 0 then #.
Retirement Specialists are available Monday through Friday
from 8 am to 8 pm ET.

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