Withdrawals
401(k) Withdrawals can only be requested (without hardship penalties being applicable) at age 59 1/2 or above. A withdrawal is considered taxable income and will be reported to the IRS. In most cases, Principal will deduct a minimum of 20% from the withdrawal amount for Federal Withholding taxes that you will owe to the IRS (Roth withdrawals or parsonage withdrawals may not be subject to these tax withholding percentages) .
To request a withdrawal, log on to your account at principal.com. Select Loans and Withdrawals > Request a Withdrawal. Select "Over Age 59" as the Type of Withdrawal. Withdrawals can be paid out in the form of a check or a direct deposit.
Important
If you want to request a withdrawal to be paid to you via direct deposit, please allow a minimum of 5-10 business days for processing. Also, you cannot make changes to your Personal profile within 30 days or requesting a withdrawal to be paid out via direct deposit. If you change ANY personal information such as your password, email, etc., you will not be able to receive a withdrawal via direct deposit. You will have to wait for a check to be mailed out.
See the Summary of Plan Provisions for more details.
Confidential Consultation
If you have questions about a withdrawal, please contact Barb Seckler, Director of Finance teams, at 407-270-1318 or payroll@reliant.org for a confidential discussion of your options.
