Business Retirement Accounts » Single Participant 401(k) Plans

Distributions

In order to take a distribution from an individual 401(k), a participant must have a qualifying event. Distributions are determined by the plan document. Eligible distributions events from an individual 401(k) may include:

» Attains age 59-1/2
» Separates from service
» Death
» Substantially Equal Periodic
» Distributions (Must be separated from service)
» QDRO
» In-Service Withdrawal (Defined by the plan document)
» Plan Termination
» Disabillity
» Required Minimum Distribution
» Loans
» Financial Hardship

All amounts distributed to a participant and allowed by the plan that do not meet one of the following exception reasons are subject a 10% premature penalty:

» Age 59-1/2
» Death
» Disability
» Substantially equal periodic distributions (Must be separated from service)
» Separated from service at or above age 55

Distributions that are eligible for rollover are subject to the mandatory 20% withholding tax.