The IRS requires that you have a "qualifying reason" for taking funds from your retirement account. The following are the only "qualifying reasons" the IRS allows for taking a distribution:

1. Age 59½ or older
2. Pre-59½ Substantially Equal Payments after termination of Employment
3. Divorce
4. Total and Permanent Disability
5. Excess Contributions into Retirement Account
6. Termination of Employment
7. Financial Hardship - The IRS has 6 additional qualifying reasons for taking a Financial Hardship. There are special circumstances regarding these qualifying reasons. Please let us know if you would like more information regarding taking a Financial Hardship.

It is an IRS ruling to have a qualifying reason to take funds out of your retirement account, if you are still employed with your organization and your plan allows for the distribution. If you do not qualify, you can not take a distribution.

The IRS requires 20% taxes be taken and sent to the IRS at the time of the distribution. You will receive a 1099 form close to tax time. You will also be liable for a 10% early withdrawal federal penalty at tax time if you are under age 59½.

There is an administrative fee for taking funds out of the retirement account. This fee is taken at the time of the distribution.

After you have requested paperwork from us, we will send you a secure email with your paperwork attached. Your cover letter will clarify whether you need to obtain your spouse’s notarized signature. Once you receive the paperwork, please print, review, obtain your plan administrator’s signature, and fax back the paperwork with any additional documents. You will receive an email confirmation once we've received your paperwork.

Once you return your paperwork with the proper signatures, it takes 3 weeks before you will receive your funds. You do have the option to receive your monies via ACH into your checking account. Please attach a copy of a voided check to your paperwork if you would like to have the funds deposited by ACH.

If your retirement plan allows for loans, this is another way to receive funds from your retirement account without having to take a distribution. If your plan allows, you could have the option of taking a loan out against your retirement account. Please let us know if you would like to find out if you qualify to take a loan against your retirement account.