Can I make withdrawals or take loans from my retirement account?

Whether an individual can make withdrawals or take loans from their retirement account with Voya Financial largely depends on the specific type of account held and the terms associated with that account. Generally speaking, most retirement accounts, such as 401(k) plans or individual retirement accounts (IRAs), have specific rules regarding withdrawals and loans. For 401(k) plans, many employers offer the option for participants to take loans against their account balance. Typically, the maximum loan amount is limited to either a percentage of the vested balance or a specific dollar amount, whichever is less. It is important to note that if a participant does not repay the loan according to the agreed-upon schedule, it may be treated as a distribution, which could result in taxes and penalties. On the other hand, withdrawals from retirement accounts are often subject to restrictions. For instance, in general, participants can withdraw funds from a 401(k) account only after reaching a certain age or in case of a qualifying hardship. Withdrawals from IRAs may also incur taxes and penalties if taken before the individual reaches fifty-nine and a half years old, unless they qualify for certain exceptions. If an individual is considering making a withdrawal or taking a loan, it is crucial to review the specific plan documents for their retirement account and possibly consult with a financial expert to understand all implications. Additionally, Voya Financial's website may provide further information on available options and the rules governing withdrawals and loans, making it a helpful resource for individuals seeking clarification on their circumstances.