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I agree it sounds like advisor wants to get his big (insert comment) hands on the money on the handout it has C. Section 401(k) Plans Contrary to the general rules discussed above which allow in-service withdrawals under a profit sharing plans, employee elective contributions may generally not be distributed inservice but rather, are subject to very restrictive withdrawal rules. This means that even where the Section 401(k) plan is actually a feature of a profit sharing plan, as most are, the participant’s own contributions are subject to much more restrictive distribution rules than those that apply to the employer contributions under the underlying profit sharing portion of the plan. Specifically, distributions attributable to an employee's Section 401(k) contributions (including both before-tax and now Roth after-tax contributions) may not be made before the participant's retirement, death, disability, severance from employment, attainment of age 59 1/2, (but only if the plan so provides) or, hardship, (again, but only if the plan so provides). [IRC § 401(k)(2)(B)]