Withdrawals

You may be wondering, "When can I take my money out of the Plan?" The Plan offers you a series of options, including three retirement choices, in addition to the other forms of qualified withdrawals.

Retirement¹

Want to retire the moment you turn 65? Or do you want to retire early? Maybe you want to work beyond the age of 65. With the Supplemental Income 401(k) Plan, you can take early retirement as soon as age 55, normal retirement at 65, or, if you'd like to keep working, you can take advantage of postponed retirement with your contributions continuing until your actual retirement date. You are required to take a distribution by April 1st of the year following the year you turn age 70½.

Before you take a retirement distribution from the Plan, talk to a qualified tax advisor. You have a few choices to consider, each with their own tax implications.

Other Forms of Withdrawals¹

In addition to retirement, there are other ways to take withdrawals from your 401(k) Plan. They are:

• Termination of employment
• Hardship, as defined by federal regulations
• Disability
• Loans, or
• Death

Loans

You can request a loan after being in the Plan for one year. Your account balance must be greater than the amount you wish to borrow. Up to 50% of your balance may be borrowed, provided you have a balance of at least $5,000. You must repay the loan with interest, usually within 5 years. In limited circumstances, such as the purchase of your primary residence, you may repay the loan over 30 years. There are no income taxes or penalties when you take out a loan, but the outstanding balance may become taxable if you fail to repay it on time. Please refer to the Supplemental Income 401(k) Plan fee schedule for all loan expenses.

If you terminate service with your employer and still have an outstanding loan balance, you need to make arrangements to pay it back. If you don’t, your loan will be considered in default and your outstanding balance will be considered a withdrawal that’s subject to taxes and penalties. Check with Plan Administrators to see what repayment options are available to you.

¹Please note that if you withdraw money from your account before age 59 ½, a 10% early withdrawal penalty may apply. Also, if the amount withdrawn is not directly rolled into an IRA or another qualified plan, 20% may be withheld for taxes.