I am 67 and have made two partial withdrawals from a 401k. I tried to make a third withdrawal and was told the number of partial withdrawals is limited to two. Is this a tax law limitation or unique to my plan?
From United States, Yonkers
From United States, Yonkers
I don't know of any restrictrion under ERISA or the IRS Code which limits the number of partial withdrawals. I am assuming that the mutual fund, bank, or other agent, which administers your 401(k) Plan has a policy to limit such withdrawals. The purpose is usually to discourage participants from using the Plan as a "checking account"; making monthly deductions which generate transaction costs.
From United States,
9From United States,
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