I am thoroughly pissed off right now.
I was just told by my 401k provider that my work's plan is so restrictive that I'm not allowed to take out MY MONEY for any reason that isn't a hardship withdrawal (medical bills, serious financial issues) or quitting my job.
Is it really MY fucking money then if I can't do what I want with it?
My gut is saying this is bullshit and you can beat it.
Current liquidity crunch logically will make these providers very incentivized to make withdrawals as painful as possible.
Get a hold of the policy in writing, or go full Karen and demand to speak to higher-ups until someone caves.
Don’t take no for an answer.
I'll certainly be making some noise, specifically with my employer, as this is completely ridiculous.
I knew they were restrictive, but most allow you to withdraw after paying a penalty or at least taking some kind of loan against it.
Just another reason illustrating just how broken our financial system is.
Money on deposit with someone else is simply a promise to pay you. One that is easily broken.
Anon, have you read your bank Account Holder Agreement yet?
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Infuriating, but unsurprising...
Sorry to hear that.😢
Typical of 401k plans: no in-service non-hardship withdrawals.
What about taking a 401k loan? (which is not really a loan but a repayable withdrawal.)
Nope. They don't even allow that, this was one of my first thoughts as well. The guy said it was one of the most restrictive plans that he'd ever seen.
No. It’s not your money. Is government’s money. All fiat money is the issuer’s money. You use it, you stick to their rules
It is an IOU…
You know what that means.
You should be able to take it out at any time you want but you'll have to pay a 10% early withdrawal penalty fee
NOPE. That's what I'd always been told and exactly what I was hoping to do, apparently my plan/employer forbids that.
Damn, that sucks. I just checked mine, which is hosted by Fidelity, and I can withdraw 100%. I'm not sure how that's legal for them to do that to you. I'd be angry as well.
I'm gonna make some waves, this is unacceptable 🌊
Thread that made me realize this was the case:
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