Join our exclusive on-demand webinar, “Distributions 101,” and learn the key rules and strategies for managing 401(k) loans, hardship withdrawals, rollovers, and more. Get expert insights that will give you the confidence to manage your retirement savings with ease.
What’s in it for you?
Expert Guidance: Hear from Alexander Ceceñas, Slavic401k’s Retirement Plan Manager, with over $100M in retirement distributions, rollovers, and money movement experience. Get insider knowledge from an industry pro.
Valuable Resources: Download the slide deck and watch the webinar recording at your convenience and learn at your own pace.
Register for the Webinar Series
Session Highlights
401(k) Distribution Mastery: From age requirements to withdrawal rules, early distributions, Rule 55, and penalty-free exceptions—master the essentials, including the 4% rule for retirement withdrawals.
401(k) Loans and Life’s Uncertainties: Thinking about borrowing from your 401(k)? Learn about fees, loan terms, credit checks, and how a job change could affect your loan repayment.
Smart Withdrawal Strategies: Understand hardship withdrawals, their consequences, and unexpected insights. Plus see a real-life comparison on what it means to take a loan versus a withdrawal.
Rolling Over Old 401(k)s: Recently changed jobs? Have an old 401(k) sitting with a previous employer? We’ll show you how to roll it over and explore consolidation strategies to simplify your retirement accounts.
Key Questions Answered
Q: Is the 10% penalty paid to the IRS or is it paid back to the plan?
The 10% if applicable is always paid to the IRS when a participant files their taxes.
Q: Would Rule 55 apply if you rollover your 401K?
If a participant does a rollover of their 401(k), that does avoid taxes and penalties, the IRS Rule 55 is actually not applicable on Rollover’s it’s only available on the account from which penalties you leave employment/retire on her age after 55.
Q: Can you take a 401(k) loan to pay off student loans?
You can take a loan for any reason- that is usually a better option than an actual distribution. Just remember, the interest you might pay on a student loan is tax deductible so from a tax benefit, it may not be worth it. BONUS BLOG: Repaying Student Loans While Saving for Retirement
Q: How do you prove a medical disability to withdraw?
Each person who files a disability claim is responsible for providing medical evidence showing he or she has an impairment(s) and the severity of the impairment(s). However, the Social Security Administration (SSA), with the claimant’s permission, will help the claimant get medical evidence from his or her own medical sources who have evaluated, examined, or treated the claimant for his or her impairment(s). SSA also requests copies of medical evidence from hospitals, clinics, or other health facilities when appropriate. Claimants who provide SSA with timely, accurate, and complete information and evidence can help accelerate the processing of their claims.
Q: Is there interest rate on loans?
Yes, it’s always Prime + 1%. All of that interest goes directly back to your account. You borrow from yourself and you are paying yourself that back as well as the interest.
Q: When converting to Roth 401k – are all future deposits taxed and placed in 401k Roth – or are all funds converted? is there a tax penalty at this time when the conversion occurs – or is it still taxable on withdrawal?
Participants can direct any or all future contributions as Roth. It would be an OPTION if someone wanted to Convert any pretax $ to Roth. If someone converts any Pretax, that amount is subject to Taxes, but NO penalties – regardless of age.
Q: Over the age of 59 1/2, if you pull a lump sum of $20K, do they tax based on the individual’s tax bracket or the married couple’s tax bracket?
Depends on how you file..Single or Jointly.
Q: How are corrective distributions taxed? Is the distribution taxed as income?
Most of Slavic401k plans don’t offer the systematic distribution. Most are “lump sum” you request how much you need anytime.
Q: What happens if you take a loan and then terminate your employment during the repayment period? Do you have to pay back the entire remaining loan amount or would it be deducted from your 401k balance?
It depends on the provider your with. Typically you will have 90 days to come due with that loan amount. If you are not able to repay it within 90 days, it will trigger a taxable event for the remaining loan balance that’s outstanding. Generally you’ll have the following quarter when you separate, to come to terms with that repayment of the loan balance that exists.
For more in-depth information on the topics above, as well as real-life examples, watch the webinar recording above. Be sure to explore all Slavic401k Webinars & Events.
