Distributions
Because of all the complex federal regulations that govern retirement plans, taking money out of your plan account can be tricky. Your retirement account is not like a savings account, where money can be withdrawn at will. Instead, there are only certain times when a “distributable event” occurs, like retirement. You are also able to receive a withdrawal (also called a distribution) when you no longer work for the employer who sponsors your retirement plan, if you become disabled or upon your death.
Depending on your plan document, you may also be able to borrow money from your plan (called a plan loan) or take money from your plan while still working, in the case of a financial hardship or emergency, early retirement clause or upon reaching age 59½. Some employees will be required to receive a distribution if they’ve contributed too much money during the year or if they are past the age of retirement. Plan distributions are complicated and involve many steps, but Randall & Hurley will explain the different distributions types and assist you with the necessary steps required to receive a plan distribution.
You may be able to login to your account to see if your plan allows these types of distributions and what the requirements are (if your employer allows it). An authorized signature or approval from your employer will be necessary before your receive a distribution.
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