Generally, the money that accumulates in your account should be used to help you throughout your retirement years. However, there may be times when you need to access your account balance before then. You will have to pay taxes and penalties for early withdrawal.
The following types of withdrawals are permitted by the plan while you are under covered employment:
- In service withdrawal- You may withdraw a portion of your account for any reason at any age
- Age 59 ½ withdrawal- You may withdraw all or a portion of your account for any reason any time after you reach age 59 ½
- Hardship withdrawal- You may withdraw all or a portion of your account if you experience a financial hardship
How Much Your May Withdraw
You must withdraw a minimum of $500. The maximum amount you may withdraw depends on the type of withdrawal you are making.
Withdrawal Fee
A $25 administrative fee will be deducted from your withdrawal amount for each withdrawal you make.
If You Separate from Covered Employment
If you separate from covered employment and take your account balance in a lump sum, then later return to covered employment, your return date will be used to calculate your allowable withdrawal.
In-service Withdrawal
You may withdraw the following contributions and amounts as an in-service withdrawal at any time for any reason. You may make one in-service withdrawal in a 24-month period.
Your spouse must sign your request for withdrawal in the presence of a notary, attesting to the fact that the withdrawal may reduce or entirely eliminate the amount available for retirement. If you choose a payment form other than a 50% J&S, your spouse must sign a consent form in the presence of a notary
The form must include the notary’s seal and signature.
