Since 401(k) plans are designed to help you save for retirement, there are penalties for taking your money out early. You’ll owe income taxes on the total amount you withdraw to the extent such amounts are taxable, and you may also owe a 10% early withdrawal penalty.
However, the Firm understands there are times you need more financial support and may choose to withdraw money from your 401(k) early – that’s why you have loan and hardship withdrawal options in case of a financial emergency. You may take out two loans at once, and you can pay any outstanding loans after leaving the Firm, take a default on your loans or take a distribution before paying of your loans. Learn more about these options in the [insert resource – is this the SPD? Or the “Your 401(k) after leaving the Firm” document?).