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COVID-19 Updates: Our Response • Branch Availability • Small Business Assistance • FAQs

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What else do I need to know?

  • Saving for retirement is easier when your contributions automatically come out of each paycheck.
  • You may be eligible to borrow up to one-half of your vested 401(k) account (to a maximum of $50,000) if you need the money.
  • You may be able to make a hardship withdrawal if you have an immediate and heavy financial need. But this should be a last resort–hardship distributions are taxable events (except for Roth qualified distributions), and you may be suspended from plan participation for six months or more.
  • If you receive a distribution from your 401(k) plan before you turn 59½, (55 in certain cases), the taxable portion may be subject to a 10% early distribution penalty unless an exception applies.
  • Depending on your income, you may be eligible for an income tax credit of up to $1,000 for amounts contributed to the 401(k) plan.
  • Your assets are generally fully protected from creditors in the event of your, or your employer’s, bankruptcy.