Over 65 but still employed...how to withdrawal funds?

[Guest tryathlons]

I am age 66 and still employed where all of my retirement savings are tied up in the company-sponsored 401k plan. I just made an offer that was accepted on a retirement home, and now my plan administrator is telling me that I can't have any of my money. They told me to take out a loan against my plan. Is this right?

[Belgarath]

It may very well be correct. A plan is permitted to not allow in-service distributions, even if you have attained Normal Retirement Age under the plan. Check your Summary Plan Description, and if this isn't clear, ask the Plan Administrator to show you the portion of the plan that specifies this.

So, such a provision is legal - you'll just want to make sure this is actually what your plan specifies.

[ESOP Guy]

If this retirement home is going to be your primary residence you may want to ask about a hardship distribution. You may qualify if your plan allows them.

Just explain your situation to the people at your company and ask them if there are any solutions that allow you to get your money before you leave employment.

[david rigby]

It's also possible your employer never gave this provision much thought. You might ask them to consider amending the plan to permit such distributions on or after normal retirment age.

It can't hurt to ask.