Rollovers and Withdrawals
- Be able to roll over your account balance from another retirement plan into your Defined Contribution Plan.
- Make withdrawals while you are working if you are at least age 59½, or in the case of serious financial hardship.
- Borrow from your account.
- If you make withdrawals after age 59½, the IRS's 10% tax penalty on early distributions is waived.
- If your employment terminates and you are at least age 55, the 10% tax penalty is also waived.
- If you are facing a financial hardship, you can make a withdrawal with the consent of your employer and plan administrator.
- The taxable portion of your account is subject to 20% mandatory federal income tax withholding unless it is directly rolled over to an IRA or another retirement plan.
You may take out a loan from your account, but loans are subject to the following:
- In general, you can borrow up to half of your account balance – up to $50,000.
- The minimum loan amount is $500.
- The maximum repayment period is five years – 15 years if the loan is for the purchase of your primary residence.
- You cannot have more than two loans outstanding at one time.
- A fee will be applied to your account if you initiate a loan.
- Loans are repaid by Automatic Clearing House debits through your bank account.