“Time is money.”
“Time is money.”
Guess Ben knew the benefits of long-term investing. It’s through long-term investing that your 401(k) can grow to help provide for you in your retirement. But, there may be times when you need to take money from your 401(k) account. Before you do, it’s important to know the guidelines. Also, consider contacting an Ayco financial coach to discuss potential alternatives.
Ben never said “Neither a borrower nor a lender be” (it was Will Shakespeare!), and we know life happens. You can borrow money from your 401(k) account at any time and at any age without paying taxes or penalties while you are an active employee. However, you will miss out on any earnings you would have gained had the money been left in your account. You also need to know that you must pay the money back on any loan with interest and within the specified time.
Here are the loan qualifications:
The primary purpose of your 401(k) is to provide for you during retirement. However, there may be times when you consider taking money from your account while still working. Before withdrawing money, contact an Ayco coach or a CareContact representative to see if there are other alternatives.
If you decide to take a withdrawal while employed at Latham, it is important to know the guidelines.
You can withdraw:
In-service distributions are subject to any applicable taxes and possible penalties. Latham may limit the number of withdrawals you may receive each year.
All withdrawals are subject to the rules established by Schwab, our plan trustee and recordkeeper. Contact Schwab for details regarding an in-service withdrawal.
See the Leaving Latham section for information about withdrawals at retirement, disability or death.