If you have contributed for a long time to a 401(k) plan, chances are you have built up considerable assets. You are to be commended for this effort. It takes discipline and focus to accumulate wealth over time.
Having reached this point, you may now want to explore options outside of your plan. If you are past your late 50s, you might have an opportunity with an in-service withdrawal. Many people with 401(k) accounts assume that their funds are locked tight until they retire.
What they don’t know is that they might be able to access their funds while still working at their employer. This mechanism is formally called an in-service withdrawal.
But what exactly is an 401(k) in-service withdrawal, under what conditions can you take one, and what consequences are there for doing so?
