401(k) Withdrawals
If you are younger than 59½ and still employed, you cannot withdraw money from your 401(k) account except in cases of hardship. If you are older than 59½, have ended employment, are retired, or are permanently disabled, you may be able to withdraw all or part of your 401(k) account balance.FAQs
A hardship case is defined as an immediate and heavy financial need and is limited to the amount necessary to satisfy that need. Under IRS criteria, you may qualify for a hardship withdrawal for medical care expenses, tuition and related educational expenses, payments to prevent eviction from a principal residence or foreclosure on the residence, closing costs and down payment for a principal residence, funeral expenses, or certain repairs to your principal residence. You are not eligible for a hardship withdrawal if you, your spouse, or minor children have other resources available. If you are married, your spouse must consent to the withdrawal in writing.
No. Employer-matching contributions made after January 1, 2001, and the earnings on those contributions are not available for hardship withdrawals. Also, EDRC funds are not available until you end employment, die, retire, or become permanently disabled. The only funds available for hardship withdrawal are your own employee contributions.
Yes. If you are over 59½ or have ended employment, you can withdraw from your 401(k) account and choose whether you want that distribution to come from Roth or before-tax funds.
No. Distributions from Roth funds come proportionally from both contributions and earnings:
- Roth contributions are always tax and penalty free.
- Roth earnings are generally penalty free if you are 59½. They are also tax free if you are 59½ and have met the five-year vesting rules.
Before-tax funds: You can withdraw money from before-tax funds with no 10% tax penalty if you end employment at 55 or older. However, the distribution is not completely tax free—you will still pay income taxes.
Roth funds: If you withdraw funds before you turn 59½, there is no 10% tax penalty, but you will be taxed on the portion that is attributable to earnings. Distributions from Roth funds come proportionally from both contributions and earnings.
Roth funds: If you withdraw funds before you turn 59½, there is no 10% tax penalty, but you will be taxed on the portion that is attributable to earnings. Distributions from Roth funds come proportionally from both contributions and earnings.
No. Your EDRC funds are not available until you end employment, die, retire, or become permanently disabled.