You may withdraw funds before termination of employment by coordinating with your plan provider(s).
Active Employee Under Age 70½
You may not withdraw funds before termination of employment except for the following circumstances:
You may withdraw funds from your deferred compensation account if:
- You have less than $5,000 in your account, AND
- You have not made any contribution for the past two years
Please contact your plan provider(s) to initiate a dormant account withdrawal; proof of hardship is not required.
An unforeseeable emergency withdrawal request will be approved to alleviate a “severe financial hardship” resulting from an “unforeseeable emergency" as defined by the IRS, including:
- A sudden and unexpected illness or accident befalling you or of one of your dependents (see IRS definition of dependent below);
- A loss of your property due to casualty; or
- Other similar extraordinary and unforeseeable circumstances arising as a result of events beyond your control
According to the IRS, withdrawals for foreseeable expenses—e.g. purchase of an automobile, college expenses—are not permitted. Furthermore, emergency withdrawals will not be allowed in cases where the participant had significant control and failed to exercise prudent judgement—e.g. abuse of credit cards, obligations related to investments, business ventures, gambling debts, or any violations of the law.
An Unforeseeable Emergency Withdrawal Request must be completed and submitted to OEB to initiate the withdrawal process.