Fidelity wont let me withdraw my 401k?

I am trying to withdraw my 401k funds and Fidelity won't even let me do this even if I pay the 10% fee and taxes, it's just not an option. They are literally making it so I can't take any of it out unless there is a hardship. Is there any way around this? 

I've been told 100 times that I will have to pay 10% and then whatever my tax bracket is, I understand that. I am just trying to figure out how to even get my money out of the 401k. The company that I work for does not allow Withdraws under the Cares act either. Any help on this would be appreciated.


The company has not contributed much at all over the years so I do not need to even withdraw their contributions if that matters.

5 Answers

  • Anonymous
    2 months ago
    Favorite Answer

    A 401K is a retirement account and is protected from early distribution since it is intended for retirement.

    In order to draw funds from that account, you need a qualifying event (like the hardship) or you need to reach the legal age to take it out as "retirement" money.  (most plans can withdraw at age 59 - but on some plans, if you still work for the company, you can't withdraw because you aren't "retired".)

    If you leave the company, you can also withdraw your full vested balance.  You then have the option to keep it and pay the taxes and penalties or roll it over into another qualifying retirement plan to avoid the taxes and penalties.

    Some companies give the option of 401K loans.  If your company has a 401K loan plan, you might qualify to take the money out as a loan.  You then repay your 401K loan by payments taken from your check each payday.  You pay yourself back the money you borrowed plus some interest into your account.  (there is usually a  small fee for creating this loan but it is much cheaper than the penalties for a hardship withdrawal.)  

    You should call Fidelity and ask if loans are an option on your 401K plan.  

  • Anonymous
    2 months ago

    Did it occur to you to ask fidelity?

  • Judy
    Lv 7
    2 months ago

    It's not THEIR rule, it's one of the basic rules of 401Ks if you're still working there.

  • Bill
    Lv 6
    2 months ago

    The CARES act withdrawals are for those who have been affected by the virus, so if you haven't been sick or lost your job, it probably doesn't apply.  Phone your employer or Fidelity (800-343-3458) and ask for an explanation.  As the other guy asked, are you trying to withdraw funds that haven't vested? 

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  • Anonymous
    2 months ago

    If you still work for the company, you can't withdraw your 401k.   You have to leave your job and THEN you can withdraw.

    If your account includes employer contributions and those contributions aren't vested, you will not be able to withdraw those funds because they do not belong to you. 

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