Save time with our cheat sheets, fact sheets, checklists & books!

March 6, 2009

When can I withdraw assets from my qualified plan or 403(b) account?

Print

When can I withdraw assets from my qualified plan or 403(b) account?

Question When can I withdraw assets from my http://retirementdictionary.com/definitions/qualifiedretirementplan qualified plan or http://retirementdictionary.com/definitions/403bplan 403(b) account?

Answer

Generally, you can make withdrawals from these accounts only if you experience a http://retirementdictionary.com/definitions/triggeringevent triggering event. Triggering events are defined under the plan document or agreement. For instance, a plan may require that you reach the age of 59 ½ and/or terminate from employment with the employer in order to be eligible to make a withdrawal from the plan. Some plans are designed to allow in-service withdrawals, which allow you to make withdrawals before experiencing a traditional triggering event. In-service withdrawals may be limited to hardship situations, which would be defined under the plan. As such, you must check with the plan administrator or in the case of a 403(b) the custodian or annuity provider, to determine whether you are eligible to withdraw amounts from the plan. Hardship distribution amounts are not rollover-eligible.

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

More

Keep Learning

Custodian

Definition The definition of custodian depends on the responsibility of the financial institution.   To make the necessary distinction between the different roles they play for

403(b) Final Regulations Issued

The Treasury Department and the IRS released final regulations related Section 403(b) Plans These regulations are the first comprehensive section 403(b) regulations since 1964, and

Be among the first to know when

IRA Rules
Change