TAG 401(k) Plan Distributions
There are several ways to access your money: regular withdrawals, hardship withdrawals, and loans.
Regular withdrawals: partial withdrawal or complete account closure
You are allowed to move the money out of the plan 90 days after you leave employment under Local 839 jurisdiction or if you are over the age of 59 1/2. Also “rule of 55” withdrawals are allowed.
Hardship withdrawals
You may withdraw all or part of your original contributions (excluding interest) if you prove financial hardship.
The IRS defines hardship as an “immediate and severe financial need”, as described in the U.S. Department of the Treasury Regulations Section 1.401(k)-1(d).
In-Service Distributions
The Treasury Department has set regulations for withdrawal of funds for specific reasons. Read about in-service distributions here.
Loans: general purpose or principal residence
Not technically a distribution (a distribution is a permanent removal of funds), a loan allows you to borrow money from your account. The maximum loan amount may not exceed the lesser of one half your account balance or $50,000. A 401(k) loan must be repaid within five years for a general-purpose loan; up to 30 years for a loan taken to purchase a principal residence.
More information about these distribution options can be found on the 401(k) Plan distributions page.