Texa$aver Withdrawals for Retirees

While you are still employed, you can withdraw funds from your Texa$aver accounts for financial hardship withdrawals and withdrawals when you reach 59 1/2. You must exhaust your 401(k) loan and/or 457 loan options before you can apply for a financial hardship withdrawal.

Age 59½ Withdrawals

Withdrawals taken from your 401(k) account if you are age 59½ or older 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.

For more information or withdrawal assistance, contact Texa$aver.

Withdrawal penalty before age 59½

If you're under age 59½, you may have to pay an additional 10% when you file your tax return. If you are still working when you are 59 ½, you can take money out of your 401(k).

You can take money from your 401(k) account if you are age 59½ or older. You will not have a penalty. Twenty percent is withheld for federal income taxes. You can also roll money from your 401(k) to IRA or other qualified plan. Funds that are rolled over are not subject to tax at that time. 

401(k) Financial Hardship Withdrawals

Taken for any of the following reasons:

• pay for 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 member; and
• principal residence repair.

457 Unforeseeable Emergency Withdrawals

Taken for any of the following reasons:

• illness or accident;
• loss of property due to casualty;
• prevent eviction from or foreclosure on your primary residence;
• pay for non-reimbursed medical expenses; and
• funeral expenses for family member.

Note: Distributions are subject to federal income taxes

Forms for these withdrawals are located on the Texa$aver website.