Why does my retirement plan say I have only about 10% of the balance available to withdraw?

For example, if I had $20,000 in there, which it says is vested, why would the amount "available to withdraw" only show $2,000 available for hardship withdrawal?





I am not trying to take any money out now. This is just out of curiosity.|||Hardship withdrawal is something that varies from plan to plan. The company offering the plan can choose whether to allow that at all or not, and then how much they would allow. It sounds like your company has allowed 10% to be withdrawn.|||Many plans limit the amount you are allowed to withdraw using the hardship exclusion. This keeps folks from drawing down their retirement too early. There is no law requiring a plan to even offer hardship withdrawals or loans.|||4. What is the maximum amount of elective contributions that can be distributed as a hardship distribution from a 401(k) plan?


The amount of elective contributions available for a hardship distribution cannot be more than the amount of the employee's total elective contributions, including designated Roth contributions, as of the date of distribution reduced by the amount of previous distributions of elective contributions. This "maximum distributable amount" generally does not include earnings, qualified nonelective contributions or qualified matching contributions, unless the plan provides that certain grandfathered amounts are included. Other amounts under the plan, if any, such as regular matching contributions and discretionary profit-sharing contributions may also be distributed on account of hardship if the plan so provides.


(Reg. 搂1.401(k)-1(d)(3)(ii))





This means, no matching contributions are considered. No earnings are considered. Previous loans, etc.|||your vested benefits are yours, no matter what happens, even if you quit without giving a notice. you probably won't be 100% vested until you are in the plan for 7 years.