Withdrawals while still employed

If you must take money out before you retire, consider doing it as a loan, if available. You at least will be paying yourself back and reinvesting in your account. Below are some instances where you may qualify:

• Hardship or Unforeseeable Emergency Withdrawal: You may qualify due to financial hardship for medical or dental expenses, costs related to the purchase of a principal residence, tuition and related educational fees, payments to prevent eviction or foreclosure, burial or funeral expenses, repair of damage to your principal residence, or expenses and losses incurred due to a disaster declared by FEMA. To qualify, you must first exhaust all other resources and certify insufficient cash or liquid assets. Withdrawals will be made proportionately from your account unless indicated otherwise on the Hardship Withdrawal Form. You are responsible for providing accurate information on the form, including documentation if necessary. There may be tax implications so speak with your tax professional.
• Qualified Reservist Withdrawal: If you are on military leave for 180 days or more, you can take a withdrawal from your pre-tax contribution account with no tax penalty. If your withdrawal includes Roth assets, your withdrawal will be tax-free if it is: (1) made five years or more after January 1 of the calendar year in which the first Roth contribution or Roth conversion was made; and (2) made on account of death, disability or reaching age 59 ½.
• Uniformed Service Withdrawal: If you are on military leave for more than 30 days, you can take a withdrawal from your account. A 10% early withdrawal tax may apply if you take a withdrawal prior to age 59 ½. If your withdrawal includes Roth assets, your withdrawal will be tax-free if the withdrawal (1) is made five years or more after January 1 of the calendar year in which the first Roth contribution or Roth conversion was made; and (2) is made on account of death, disability, or attainment of age 59 ½. A Roth withdrawal before requirements are met may result in taxation of your earnings and a 10% tax penalty may apply.