Understanding your 403(b) Plan and 457(b) Deferred Compensation Plan distribution options.
A lot of factors go in to answering this question—including employment status, age and access rules, which are outlined in your plan rules. We recommend connecting with your financial professional to understand which of the options described below are allowed by your plan and determine what’s right for you. However, here are some things to know:
While employed, if you encounter certain life events, you may be permitted to withdraw money from your plan to cover the expense associated with hardship. Hardship Distributions may be permitted for the following events:
- Medical expenses not covered by insurance
- Tuition expenses for the next 12 months
- Funeral expenses
- Purchase of primary residence
- Casualty loss to primary residence not covered by insurance
- Prevention of eviction or foreclosure on mortgage
Distributions are taxed as ordinary income, may be subject to the 10% IRS early distribution penalty, and may be subject to policy and/or plan withdrawal charges.
While employed, if you encounter certain life events, you may be permitted to withdraw money from your plan to cover the expense associated with unforeseen emergency. Unforeseen Emergency Distributions may be permitted for the following events:
- Medical expenses not covered by insurance
- Funeral expenses
- Casualty loss not covered by insurance
- Prevention of eviction or foreclosure on mortgage
Distributions are taxed as ordinary income and may be subject to policy and/or plan withdrawal charges.
The companies of National Life Group and their representatives do not offer tax or legal advice. For advice concerning your own situation, please consult with your appropriate professional advisor.
Emergency Access Waiver
The Emergency Access Waiver is available on many, but not all, National Life Group fixed indexed annuity policies. To learn more about how it can work for you, please watch the video below.
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