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401(a) Withdrawal Information

You are eligible to begin receiving payments from your 401 plan account at retirement or when you leave employment with your current employer. How and when you choose to take payments from your account are important decisions. There are many considerations - the form of payment, the tax consequences, and your other forms of retirement income. You should review several factors before making a decision, including:

  • You only pay taxes on money you receive.
  • Funds that remain in your account and any future investment earnings continue to accumulate tax-deferred until they are withdrawn.
  • You may continue to direct the investment of the assets that remain in your account as allowed by your employer's plan.
  • Any remaining account balance will be available for distribution to your beneficiary(ies) in the event of your death.
  • You are subject to 20 percent mandatory federal tax withholding if you elect to directly receive funds eligible for rollover to another employer plan or an IRA. Please consult the Special Tax Notice Regarding Plan Payments contained in the 401 Benefit Withdrawal Packet.
  • Withdrawals may be subject to an additional 10 percent tax penalty for early withdrawal. Please review the Special Tax Notice regarding Plan Payments contained in the 401 Benefit Withdrawal Packet for additional information.

 

When can I withdraw assets from my account?

 

You are eligible to withdraw funds from your 401(a) account under the following circumstances:

  • When you retire
  • When you leave your job for any reason

While still employed and if your employer plan allows, the following additional withdrawals may be available to your up to twice per calendar year:

  • Voluntary after-tax contributions
  • After age 59 ½ for employees who are 100 percent vested (401 Profit Sharing Plans only)
  • To request a 401 Benefit Withdrawal Package, please contact Investor Services at 1-800-669-7400.