Can I Withdraw My 401(k) While Still Employed?
Summary of User’s Concern and Solutions Discussed:
- The user is unsure if they can withdraw from their 401(k) with Fidelity while still employed and is seeking guidance on the process.
- Most workplace retirement plans do not allow withdrawals while employed; the user should contact their plan administrator for specific details.
- If the user separates from their employer, they can choose to cash out, roll over to an IRA, or transfer to a new employer’s plan.
- To withdraw, the user can log into NetBenefits.com, select “Loans or Withdrawals,” and review their options.
- Consulting a qualified tax professional is recommended to understand the tax implications of each withdrawal option.
Here’s the full thread
i have a 401k with fidelity through my job, but i need to close it and withdraw whatever i have vested, but am i able to do this without leaving my job? im trying to get an email or something to talk to someone but not finding anything.
Hey there, @deeeeetrick. Thanks for visiting our Discord. We are happy to provide some information regarding 401(k) withdrawals.
It is important to note that most retirement workplace plans, like your 401(k), typically do not allow rollovers or withdrawals while you are still employed. This varies by plan, and we recommend contacting your plan administrator to find out what your plan will allow.
If eligible, there are important factors to be considered, such as ordinary income taxes and a potential 10% early withdrawal penalty on any withdrawals if you are under age 59 1/2. To learn more about your choices, check out the link listed below.
Thinking of taking money out of a 401(k): https://www.fidelity.com/viewpoints/financial-basics/taking-money-from-401k
Should you decide to move forward, you can make a withdrawal online using Netbenefits.com, by following these steps:
1. From the “Quick Links” tab, select “Loans or Withdrawals”
2. Choose the button “See your Options” to review your choices
For additional assistance, you can contact our Workplace Investing team by phone. They are available Monday – Friday from 8:30 a.m. to midnight ET.
Contact Us: https://www.fidelity.com/customer-service/contact-us
If there’s anything else we can help with, don’t hesitate to let us know. 🟢
ok thanks, but if i were to leave the job they couldnt deny me withdrawing the total anount i have vested correct? i understand ill be penalized 10% but they would have to let me withdraw it correct?
Great question, @deeeeetrick.
If you separate from your employer, you generally have a few choices to consider when it comes to your 401(k):
1. Keep your 401(k) with your former employer
2. Roll over the money into an IRA
3. Roll over your 401(k) into a new employer’s plan
4. Cash out
The link below covers these choices in further detail.
Considerations for an old 401(k): https://www.fidelity.com/viewpoints/retirement/what-to-do-with-an-old-401k
That said, it’s best to review your Summary Plan Description (SPD) to learn more about what your plan will allow. Select “Plan Information and Document” from “Quick Links” (3 dots) on NetBenefits.com to access the SPD.
With that said, if you have additional questions regarding the tax implications of each choice, we highly suggest consulting with a qualified tax professional.
If there’s anything else we can help with, just let us know! 🟢
how fast do you guys cash out a 401k when
Can you expand on your question a bit? 🟢