Emergency Expense Withdrawals
Monday thru Friday
7:00am to 9:00pm CST
Monday thru Thursday
7:30am to 5pm CST
Friday 7:30am-3pm CST
Beginning January 1st, 2024, under the parameters of the Secure Act 2.0, the plan will permit emergency withdrawals of the participant's vested account for purposes of meeting unforeseeable or immediate financial needs relating to personal or family emergency expenses.
An emergency expense withdrawal may not exceed the lesser of 1) $1000, or 2) the excess of the individual's vested account balance over $1000. In other words, the maximum withdrawal amount is $1000 for those that qualify.
A participate may take only one emergency expense withdrawal in any calendar year from their retirement plan. Participants self-certify their eligibility for emergency withdrawals.
Emergency expense withdrawals can be repaid, but they are not required to be. If they are not repaid, a participant cannot take another emergency expense withdrawal within the next three years (unless subsequent contributions following the withdrawal have amounted to the total withdrawn or more.)
Mandatory 20% withholding does not apply and the 10% penalty tax for early withdrawal is waived for emergency expense withdrawals.
10% federal withholding applies unless the participant elects to opt out.
If you have a need to take an emergency expense withdrawal after 01/01/2024, you can initiate the withdrawal by contacting Principal Participant Services at 1-800-547-7754 between the hours of 7am and 9pm CST.