How to make a 401(k) emergency withdrawal
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Screens simulated for illustrative purposes only. Actual experience may differ.
Important considerations before you make a 401(k) emergency withdrawal
Before you request an emergency withdrawal from your 401(k), keep these key points in mind:
1.
Emergency (hardship) withdrawals
Some plans allow emergency withdrawals for immediate and heavy financial needs. If your plan offers this option, you’ll need to meet specific criteria and provide documentation.
Impact: Emergency withdrawals reduce your retirement savings and may have tax implications.
2.
Consider a loan first
If your plan allows loans, this may be a better alternative. Loans do not generate a tax form and typically have less impact on your long-term savings.
3.
Plan-specific rules
Your plan may have unique rules. If you see an option in your account, it means your plan allows it. Always review your plan details before proceeding.
Tip: Consult a tax advisor or financial professional before making a withdrawal.
Step 1
Go to Benefits OnLine at the web address provided by Merrill or your employer. Please note, your screen may differ from the example shown.
Step 2
From the Home page, click on the blue hyperlink of your 401(k) plan which will take you to the Account Summary page.
Step 3
Select View your withdrawal and rollover options under Actions.
Step 4
Select Start A Withdrawal.
Step 5
Review your options on the Cash Withdrawal Request page.
Select Emergency Withdrawal under Withdrawal Type.
Step 6
In the "Withdrawal Amount" field, enter your withdrawal amount.
Step 7
For non-rollover eligible distributions, the default tax withholding is 10%. You can change this to any rate between 0% and 100%, but if the payment goes outside the U.S. or its possessions, you must keep at least 10%.
For eligible rollover distributions, the default withholding is 20%. You can choose a higher rate, but not lower than 20%.
Step 8
- Check the box to confirm your intent to sign Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions.
- Calculate the amount You Will Receive.
- Review your information and select Continue.
Step 9
Review the certification of eligibility language, and to certify check the I Certify box and then select Continue.
Step 10
Choose your Delivery Method and fill in the fields as prompted. Once completed select Continue.
Step 11
Review the 402(f) Tax Notice before selecting Submit to process your transaction.
Thank you for using this guide to learn how to request an emergency withdrawal from your 401(k). Your Benefits OnLine account gives you secure, convenient access to manage your retirement benefits including withdrawals, loans, and account updates anytime, anywhere.
Staying informed and engaged helps you make confident decisions about your financial future.
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