If you are both 59 ½ and still employed, you are eligible to request an in-service distribution. This type of distribution allows you to distribute a lump sum or partial amount from your 401(k) while still employed. Additionally, if you are still employed and take an in-service distribution, you can continue making contributions to your account.
Outlined below are the tax considerations & fees associated with an in-service distribution request:
- This distribution type is treated as a permissible withdrawal without an early withdrawal tax penalty. (1)
- However, Guideline will deduct a 20% mandatory federal withholding (and any applicable state tax withholding).
- We’ll also deduct a $50 distribution fee to process your request.
How can I begin my In-Service Distribution Request?
Once eligible, an In-Service Distribution Form will become available in your Forms & Templates folder.
How long until I receive my check?
Once you submit the form to us via the Shared Files folder of your account, please contact our team to process the request. Standard processing will take approximately 3-4 weeks.
(1) This information is for general education purposes only and not intended to be tax advice. We encourage you to consult a qualified tax professional before requesting a distribution.