UPSers Login: Apply for 401K Hardship withdrawal

Hardship withdrawals 

Prior to age 59½, you may withdraw a portion of your account balance (other than investment earnings on your pre-tax contributions and any portion of your Roth 401(k) account) in the event of a financial hardship for the following reasons: • Purchase of a primary residence • Post-secondary education expenses • To prevent eviction from or foreclosure on your primary residence • Unreimbursed medical expenses • Payment for burial or funeral expenses for your deceased parent, spouse, child, or other dependent • Expenses for the repair of any damages to your principal residence that would qualify for the casualty deduction for federal income tax purposes You must first exhaust all other loan and withdrawal possibilities before requesting a hardship withdrawal.



In-service withdrawals

When you have reached age 59½ or older, you may make withdrawals of your pre-tax contributions without penalty even if you are still working for UPS. Withdrawals of any rollover money in your account and after-tax contributions are allowed at any time. Withdrawals from the Plan may be subject to 20% federal tax withholding. Employee pre-tax contributions that are part of a hardship withdrawal are not subject to the 20% withholding. If you are less than age 59½, federal income taxes may apply, state and local taxes may apply, and a 10% early withdrawal penalty may apply.

Read: www upsers com login

Distributions If your balance in the Plan is less than $1,000, you may request one of the following options, 30 days after you retire or leave UPS: • Take a lump-sum distribution • Take a partial distribution (although all of your funds must be distributed from the Plan no later than 60 days following the date you leave UPS) • Roll your balance over to an Individual Retirement Account (IRA) or another qualified plan If you do not choose one of the options above, your account balance will automatically be distributed to you in cash. If your balance in the Plan is $1,000 or greater, you may request one of the following options, 30 days after you retire or leave UPS:

Read: 401K Contribution Limits 2022

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