Q: How is the maximum amount available for hardship withdrawal determined?
A: The amount is calculated by adding the participant’s 12/31/88 401(k) account balance (if any) and their contributions since that date. Earnings on a participant account after 1988 are not eligible for withdrawal. Some plans also allow withdrawals from employer matching and employer profit sharing accounts. Check your adoption agreement and plan document for further information.
Q: How can you find out how much is available for a withdrawal?
A: This information is available to you and your participants through your record-keeping provider’s website.
Q: Can a participant incorporate 20% withholding tax into the total amount of the hardship distribution?
A: Yes, as long as the total amount being withdrawn does not exceed the maximum amount available for the hardship distribution.
Q: I am no longer with my company – can I withdraw the funds?
A: Yes, as long as you have been terminated from the company, we can begin the paperwork in order to pay you out of the plan. You can contact your Plan Administrator at your company or contact our Client Services department, 601.
Q: I am still working for my company – how do I get my money?
A: You cannot take your money out of your retirement plan while you are still working at the company. However, you may have other options available to you, and should check with the Plan Administrator at your company or contact our Client Services department, 601.
Q: How frequently are statements available?
A: Statements on your account will be available on a quarterly basis. The statements are available a few weeks after the end of the quarter. You may view your account summary by going through your record-keeping provider’s website.
Q: How can I see the activity in my account?
A: You can view the activity in your account online by going through your record-keeping provider’s website.
Q: How can I update my address?
A: You can update your address by going through your record-keeping provider’s website.
Q: How do I change my investment elections?
A: You may change your investment elections by going through your record-keeping provider’s website.
Q: What is the current interest rate on a loan?
A: The interest rate on a loan can vary by plan. However, most plans utilize a prime+1 rate. At the time a loan is issued, the rate is fixed at the current rate for the life of that loan. Loan rates are reevaluated on a quarterly basis.
Q: Is this interest on my loan paid to my account?
A: Yes, the interest you pay on a loan is added to your account.