Do you mean withdrawing the entire amount because you've left the company or do you mean withdrawing some of the money in the account while you are still employed by the company?
In either case, the short answer is, contact your HR department or in a small company, the plan trustee...typically the owner. You will need to contact them to find out the specific limitations of your plan and to obtain the appropriate forms to get the process started (in some cases, companies have the forms available online to be downloaded).
Now here's the long answer:
If you have left the company, you will need to tell HR that you are a former employee and you wish to remove the funds from the plan. Your options are:
If you are still employed by the company, some plans (not all) permit loans or "hardship" withdrawals or both...check with HR.
Generally, loans are permitted up to 50% of the vested account value but no more than $50,000. These loans are paid back over 5 years with regular payroll deductions. Typically you can't borrow unless the loan is for one of the purposes explained below under "hardship withdrawals"...again, check with HR. Loans are not taxable but if you leave the company without fully repaying it, the balance outstanding will be taxable in that year and subject to a 10% penalty if you are under 59 1/2.
For hardship withdrawals, the IRS permits them only if "the withdrawal is due to an immediate and heavy financial need"; you cannot have other money available to satisfy the need; the withdrawal must not exceed the amount you need; you must first have taken all loans available from plan; and you can't contribute to the plan again for 6 months after the withdrawal. Hardship withdrawals are taxable in the year received and if you are under age 59 1/2 you will also have to pay the IRS a penalty equal to 10% of the amount withdrawn. You don't have to pay back the withdrawal.
Here are what are considered hardship reasons by the IRS: 1.Unreimbursed medical expenses for you, your spouse, or dependents. 2.Purchase of an employee's principal residence. 3.Payment of college tuition and related educational costs such as room and board for the next 12 months for you, your spouse, dependents, or children who are no longer dependents. 4.Payments necessary to prevent eviction of you from your home, or foreclosure on the mortgage of your principal residence. 5. Funeral expenses. 6.Certain expenses for the repair of damage to your principal residence
Hi Michael, Do you have any account statements? There should be a phone number you can call in order to get the steps to withdraw your money. Usually, they have a form that you will need to fill out. If you do not have an account statement you should call the HR department of your employer (or former employer). They will be able to provide this information as well.
However, just because you can take out your money does not mean you should. I don't know your situation so maybe you are retired but if you are not I would encourage you to leave your 401k money right where it is or better yet roll it out into an IRA. This way it will continue to grow and be there when you need it.
If you follow up with some more details about your situation I can better assist.
Hi there thanks for reaching out. You need to contact the human resources department of your former employer or the investment provider of the 401(k) plan. The contact information for the 401(k) provider can be found on your statements if one of those is available. Feel free to contact me via email to continue the conversation
As Phillip mentioned, withdrawing (or rolling) the 401k is not always your best bet.
It depends on the quality of your investment options in the 401k, with particular emphasis on any stable value options you may have within the plan. In the current low-interest rate environment, some 401ks have better options in this area than you can access in other accounts. But this is why it's most important to understand how your entire investment portfolio fits together. Coordinating all your accounts together allows you to use the best options in each account.
However, it may be that you need the money for cash flow reasons, and I would adhere to the advice that's already been given above in that situation.
As with many financial questions, the best answers are delivered after all the details are disclosed. Hope you found the answer you needed.