Q:

How do you make a withdrawal from a 401(k)?

A:

Quick Answer

To make a withdrawal from a 401(k) retirement plan, borrowers must contact the human resource office of the employer or the investment company hosting the plan, complete a withdrawal form and provide reasons for the withdrawal if younger than 59 1/2. Fees may apply when withdrawing funds early.

Continue Reading
How do you make a withdrawal from a 401(k)?
Credit: Dennis Novak Photographer's Choice Getty Images

Full Answer

As of Oct. 2014, individuals withdrawing prior to retirement age can request a hardship withdrawal to cover the cost of medical expenses, school tuition, funeral costs, a home purchase or to prevent eviction or foreclosure. When withdrawing from a 401(k) plan for a hardship loan, the borrower is subject to a 10 percent IRS penalty and income taxes.

Learn more about Financial Planning

Related Questions

  • Q:

    How do you plan for retirement in South Carolina?

    A:

    Individuals who work for the state of South Carolina can inquire with the South Carolina Public Employee Benefit Authority to determine retirement plan options that may include investment consulting services, according to the South Carolina Public Employee Benefit Authority. People planning for retirement in South Carolina should set goals to save enough funds that equal 70 percent of preretirement income to maintain a standard of living once retired, recommends the U.S. Department of Labor.

    Full Answer >
    Filed Under:
  • Q:

    What are some differences between a 401(k) and an IRA?

    A:

    Differences between a 401(k) retirement plan and an individual retirement account include eligibility for participation, maximum contributions allowed and investment options, according to Investopedia. Differences in eligibility and tax treatment also exist between the two types of IRA accounts, traditional and Roth, notes U.S. News & World Report.

    Full Answer >
    Filed Under:
  • Q:

    How does a 401(k) work?

    A:

    A 401(k) is an employer-sponsored retirement plan that allows employees to put tax-deferred dollars into investment accounts to save for retirement, according to 401khelpcenter.com. Your employer may make optional contributions into your retirement account. There are limits to how much you can contribute to these type of accounts.

    Full Answer >
    Filed Under:
  • Q:

    What are some benefits of the Fidelity 401(k)?

    A:

    Fidelity 401(k) helps employers run an effective retirement plan for employees by providing in-depth executive support and advice on investment choices. Employees also achieve financial literacy with training on investment goals, as claimed by Fidelity Investments.

    Full Answer >
    Filed Under:

Explore