Did you know that you may be able to withdraw up to 98% of the money in your 401(k) plan BEFORE you retire from your job?
An in-service non-hardship withdrawal can give you early access to your retirement assets if you need income or a lump sum, or just want to invest them in a different way. You might even be able to make such a withdrawal while you are still working.
If you are considering this, there are some potential consequences to note. Some employers forbid future plan contributions for workers who opt for these withdrawals, and some plans may charge fees for the privilege. The withdrawn assets may end up with less protection from creditors than they had within the 401(k) plan.
You will need to check to see which plan assets are eligible for this kind of withdrawal (earnings, after- or pre-tax contributions, matching dollars, rollover amounts). If you elect to roll over the money into an IRA, you should be familiar with the tax implications of such a move.
In-service non-hardship withdrawals can be a worthwhile option for employees older than 59½ who need to tap retirement savings. Call us at 866-594-9919. I can help you explore your options.