You need to call the custodian of the plan (you should be able to find the phone number on a recent statement) and request how to withdraw or rollover your funds.
Alternatively, contact the Lowes' HR department to request direction or documentation on the procedure. Typically, when you leave a large employer like Lowes, HR (or the custodian) will provide you a document outlining your options for what to do with your 401K.
Hi Mindy! Your best course of action is to contact the Lowes HR department to find out how to access your account. Before doing that, you should think through how to handle the withdrawal. If you are panning to roll the funds into an IRA, you should do a direct transfer so there are no immediate tax implications. If you take a check directly, you have to deposit it within 60 days or face taxes and possibly an early withdrawal penalty. Don't lose your money to the government! Talk to a planner first.
Mindy, while contacting your previous HR Dept. at Lowe's is one way, you should also have an "800" number on your Quarterly statement for direct access to your account/plan, or you may even have an Online Access set up. If you do have Online access, you may be able to handle all of this without being stuck on the phone! As Pam stated above, do a Direct Rollover into an IRA Account. While you can do it the hard way by receiving a check, why open yourself to possible IRS issues. If you need any further assistance, please feel free to reach out! Good luck and all the best in your future employment growth.
Before you withdraw your funds, you should fully explore your plans options. Often individuals will fall prey to unscrupulous financial people who will try to get your money so they can make large commissions. If you are unsure what to do with the money sometimes it is best to do nothing before you do something that you might regret.
Minday - please understand the terminology clearly. To withdraw from a 401(k) means to take the money out of the plan and expose it to taxation. The amount you withdraw will become immediately taxable at ordinary income rates - not the lower capital gains rates. This usually isn't what you want. Instead, think about a rollover - either into another qualified plan at your current employer (if the plan accepts such rollover contributions) OR, more to the point, rolling the 401(K) funds into a personal IRA. This will NOT be a taxable transaction.
Hello X Lowes employee:
The easy answer to taking your money is the contact the 800 number shown on your statements and they will be able to review with you how to get you money.
If you would like to keep this money to have for you future setting up a time with a Financial Advisor and bring your statement with you should be enough to get the money in your control.
Mindy do you want to take the money out completely? If so you will have to pay a penalty and taxes on the funds. Unless it’s an emergency keep the funds in the IRA. The best course would be do a direct roll over to a Roll-over IRA. Contact HR from Lowes and they will be able to give you the forms to roll it out. I would suggest you open am IRA Roll over account first. If it for a first time home purchase they tend to let you use up to $10,000 with no penalty.
One item to note are some differences between a 401(k) and an IRA on how to avoid the 10% penalty (but you will still be subject to taxation). If you are 55 years old and are separated from service (retired) then you can withdraw from your 401(k) without being subject to the 10% penalty. An IRA does NOT have that feature. However, if you take distributions from an IRA to pay for medical premiums while unemployed or to pay for qualified higher education expenses then those distributions are not subject to the 10% penalty. A 401(k) does NOT have that feature. So there are different nuances to each type of account that could pertain to a client’s financial situation.
Hope this helps!
Mindy, just in case you do not need the money to survive until you get another job, you should roll YOUR money into YOUR OWN IRA, and NOT leave it in the Lowes 401K plan.Wells Fargo Advisors, 401K div. call this number1-336-658-3535. The process is to call the custodian, ask for a Direct Rollover Authorization form. Once you get this form, fill it out. Look me up in the Utah area and I'd be glad to help you fill it out. You will need the account number to the account that will be receiving the funds, even though it is possible they will send you a cashier's check. The check will be made payable to your IRA FBO and YOUR NAME. You have to deposit this check into an IRA within 60 days or you will be sent a 1099 demanding taxes and a 10% penalty, if you are under 59 and a half years old, be paid on the entire amount. The Lowes 401K plans' custodian is Wells Fargo Advisors, 401K div. call this number1-336-658-3535, tell them your employer and employer id or social security number, then ask for a Direct Rollover Authorization Form.