There are two types of withdrawals available through the Texa$aver program while you are an active employee: Age 59½ withdrawals and financial hardship withdrawals.
Age 59½ withdrawals can only be taken from your 401(k) account if you are age 59½ or older. You will not have a penalty; however, a 20% tax on your withdrawal will be withheld if the funds are not rolled over to an IRA or other qualified plan. Funds that are rolled over will not be subject to taxes at that time. For more information or withdrawal assistance, please call the Texa$aver customer service center at (800) 634-5091.
Financial hardship withdrawals can be taken for any of the following reasons:
- payment of non-reimbursed medical expenses,
- purchase of your primary residence,
- prevent eviction from or foreclosure on your primary residence,
- qualified post-secondary education expenses,
- funeral expenses for family members and
- principal residence repair.
You must exhaust your 401(k) and/or 457 loan option (if applicable) before you can apply for a financial hardship withdrawal. You can request a form by calling the Texa$aver customer service center.
Distributions are subject to federal income taxes.