401k terms- do not have any

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  • #46106

    Hello I am at the credit access stage but my MC is asking for withdrawal terms from the bank for my 401k withdrawal but I do not have any paperwork. I have spoken to several ppl at the bank and they all have send there is no paperwork because there are no terms. I really need help because I have nothing to provide for credit access!

    #46107
    Divine41
    Member

    Are you using your 401k funda for closing? If you are doing a loan against your 401k, then show them how many months tou would have to pay it back and what the payments will be.
    If youre doing a withdrawal, show your 401k statement where it says how much you are eligible to withdraw (if you’re vested).

    That should be sufficient.

    #46108
    Butterfly123
    Member

    I’m assuming they need the 401k terms from your 401k service provider. This documentation normally shows the amount you are withdrawing along with any fees. It will show if it was a withdrawal or loan from your 401k. If it’s a loan it will provide in detail the repayment terms.

    #46117
    gordiva123
    Member

    If your 401k is online, if you have access to the account, you can (depending on the web service available), click to say you want to request money from your 401k and it can show how much you can take, what your options are, how long it takes to pay it back,and even when you can get the check or if you want a check or auto payment. I have Fidelity and it has all these options online without calling anyone. If you can not get access, call the manager for your 401k or your HR rep at your job and they can get in contact with the 401k company to tell you how to find the terms online.

    #46164
    TTrumble
    Member

    Hello homeowner2018,

    All three of the above responses are good ones, depending upon your specific 401(k). The bottom line is that there is no such thing as “no terms”.

    A new type of tax deferred retirement account was created in Section 401(k) of the Revenue Act of 1978, which was a package of changes to the tax code. It also set down rules on when the funds in the account can be used for retirement, and other rules such as tax penalties for early withdrawal and possible ways to use the funds for other specific items, such as buying a home, without incurring a penalty.

    Therefore, when borrowing from your 401(k), there MUST be written repayment terms within the plan description. Otherwise it is an early withdrawal and subject to some pretty stiff penalties. You need to go back to your 401(k) administrator and talk to someone who knows what they are doing.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    • This reply was modified 2 years, 3 months ago by TTrumble.
    • This reply was modified 2 years, 3 months ago by TTrumble.
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