You've reached a point where you're considering withdrawing funds from your Voya 401(k) – a significant financial decision! Whether it's for a new life chapter, an unexpected need, or reaching retirement age, understanding the process is crucial. This guide will walk you through each step, helping you navigate the complexities of Voya 401(k) withdrawals with confidence.
Your Comprehensive Guide: How to Withdraw from Voya 401(k)
Let's get started on this journey together. Before you even think about clicking that withdrawal button, let's ensure you're fully prepared.
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| How To Withdraw From Voya 401k |
Step 1: Understand Your Withdrawal Eligibility and Options
This is arguably the most important initial step. Not all 401(k) withdrawals are created equal, and your eligibility largely depends on your specific circumstances and your plan's rules.
A. Determine Your Withdrawal Type
Voya 401(k) plans typically offer several withdrawal options, depending on your situation. It's vital to identify which category you fall into:
Age-Related Withdrawals (Generally 59½ or Older): If you've reached this age, you generally have more flexibility and avoid early withdrawal penalties. This is often the ideal scenario for taking distributions.
Withdrawals After Termination from Employment: If you've left your job, you're usually eligible to take a distribution. However, some plans may have a waiting period (e.g., 45 days after termination) to ensure all contributions are settled.
Hardship Withdrawals: These are for immediate and heavy financial needs that cannot reasonably be satisfied from other resources. The IRS defines specific hardship reasons (e.g., unreimbursed medical expenses, preventing eviction/foreclosure, funeral expenses, certain disaster losses). Be aware that even if your plan allows hardship withdrawals, they are subject to strict rules and often carry significant tax implications and penalties.
Standard Withdrawals (In-Service): Some plans may allow in-service withdrawals even while you are still employed, but these are less common and often have specific criteria (e.g., if your account balance is below a certain threshold or if you haven't contributed for a set period).
Rollovers (Direct or Indirect): While not a withdrawal in the sense of receiving cash, rolling over your 401(k) to another qualified plan (like an IRA or a new employer's 401(k)) is a common way to access or move your funds without immediate tax consequences. This is often the most financially advantageous option if you don't need the money right away.
B. Review Your Specific Voya Plan Documents
Your employer's 401(k) plan with Voya might have unique provisions. This means that while general rules apply, your specific plan document will outline the precise eligibility criteria, available withdrawal options, and any specific waiting periods or restrictions. You can usually access these documents through your Voya online account or by contacting Voya customer service.
Step 2: Gather Essential Information and Documentation
Once you know what kind of withdrawal you're looking for, it's time to get organized. Having everything ready will streamline the process.
A. Personal and Account Details
Your Voya Account Number(s): This is your primary identifier with Voya.
Social Security Number (SSN): Always required for tax purposes.
PIN/Login Credentials: For accessing your Voya online account.
Contact Information: Ensure your address, phone number, and email address on file with Voya are current.
QuickTip: Use CTRL + F to search for keywords quickly.
B. Financial Information
Desired Withdrawal Amount: Know exactly how much you intend to withdraw.
Banking Information (for Direct Deposit): If you want an Electronic Funds Transfer (EFT), you'll need your bank's routing number and your checking or savings account number. Note: Voya may require your banking information to be on file for a certain period (e.g., 7 days) before releasing funds via EFT.
Payee/Trustee Name and Account Number (for Rollovers): If you're rolling over funds, you'll need the exact details of the receiving institution (e.g., your new IRA custodian or employer's 401(k) provider).
Tax Withholding Preferences: Be prepared to indicate how much federal and, if applicable, state income tax you want withheld from your distribution.
C. Supporting Documentation (Especially for Hardship Withdrawals)
Hardship withdrawals are not a simple click-and-receive. You will need to provide concrete evidence of your financial hardship. Examples include:
Medical bills (with EOBs showing your portion owed)
Eviction notices or foreclosure warnings
Repair estimates for damage to your primary residence (from certain disasters)
Funeral expense statements
Failure to provide adequate documentation will result in your hardship withdrawal request being rejected.
Step 3: Access Your Voya Account and Initiate the Withdrawal
With your information in hand, you're ready to start the formal process.
A. Online Withdrawal Request (Recommended)
Log In to Your Voya Account: Go to the Voya retirement plans website (often
www.voyaretirementplans.comor a specific URL provided by your employer). Use your username and password to log in.Navigate to Withdrawals/Distributions: Look for sections like "Account," "Withdrawals," "Distributions," or "Request a Withdrawal." The exact navigation may vary slightly depending on your plan's interface.
Select Your Withdrawal Type: Choose the appropriate withdrawal type you identified in Step 1 (e.g., "Age-Related Withdrawal," "Termination Withdrawal," "Hardship Withdrawal," or "Rollover").
Follow On-Screen Prompts: The online system will guide you through the necessary steps:
Entering the amount.
Selecting the payment method (check or direct deposit).
Providing rollover details if applicable.
Specifying tax withholding.
For hardship withdrawals: You'll likely need to upload supporting documentation directly through the portal or be instructed on how to submit it.
Review the Special Tax Notice: Federal law often requires you to review a "Special Tax Notice Regarding Plan Payments" before completing a withdrawal. Read this carefully, as it outlines the tax implications of your distribution. You may be asked to acknowledge that you have read and understood it.
Submit Your Request: Once all information is entered and reviewed, submit your withdrawal request.
B. Phone Request
If you prefer speaking with a representative or encounter issues online:
Call Voya Customer Service: Locate the Voya customer service number for your specific plan. Common numbers include:
1-800-584-6001 (general Voya Retirement Plans)
1-855-674-4015 or 1-877-852-4015 (plan-specific numbers may vary, check your plan documents or Voya's website for the most accurate number).
Customer service associates are typically available weekdays, excluding New York Stock Exchange holidays.
Be Prepared for Verification: You'll likely need to provide your SSN, account number, and possibly your PIN for verification purposes.
State Your Intent: Clearly tell the representative you wish to initiate a 401(k) withdrawal.
Follow Their Instructions: They will guide you through the process, ask for the necessary information, and inform you of any forms you might need to complete and return. They can also explain tax implications and answer specific questions about your plan.
C. Forms and Mail/Fax (Less Common, but Available)
In some cases, or for certain complex withdrawals, Voya might require you to fill out specific forms and mail or fax them.
Locate Forms: Check the "Forms" section on your Voya online portal or ask a customer service representative to direct you to the correct form. Examples include "Payout Request Form" or "Hardship Withdrawal Application."
Complete Accurately: Fill out the form entirely and accurately. Incomplete forms are a common reason for processing delays.
Obtain Signatures (and Notarization, if required): Ensure all required signatures are present. Some forms, particularly those for significant transactions or certain hardship withdrawals, might require notarization.
Include Supporting Documentation: Attach all necessary documents as specified on the form.
Mail or Fax: Send the completed form and documents to the address or fax number provided on the form. Keep a copy for your records.
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Step 4: Understand the Financial Implications (Taxes and Penalties)
Tip: Summarize each section in your own words.
This is a critical step that many people overlook until it's too late. Withdrawing from a 401(k) has significant financial consequences.
A. Income Tax
Ordinary Income: Most 401(k) withdrawals (from traditional 401(k)s) are taxed as ordinary income in the year you receive them. This is because contributions were made on a pre-tax basis.
Federal Withholding: Voya is generally required to withhold 20% of your eligible rollover distribution for federal income tax. However, this 20% might not cover your full tax liability, especially if you're in a higher tax bracket. You might need to pay more taxes when you file your annual tax return.
State and Local Taxes: Depending on where you live, state and local income taxes may also apply to your withdrawal. Voya might offer options for state tax withholding as well.
B. Early Withdrawal Penalties (Under Age 59½)
10% Additional Tax: If you withdraw funds from your 401(k) before age 59½, you generally face a 10% additional tax penalty on top of your regular income taxes. This penalty is imposed by the IRS.
Exceptions to the 10% Penalty: There are specific IRS exceptions to this penalty, though they are often narrow and require careful review. Some common exceptions include:
Death or total and permanent disability of the account holder.
Qualified medical expenses exceeding 7.5% of your adjusted gross income.
Substantially Equal Periodic Payments (SEPP): A series of withdrawals calculated over your life expectancy.
Qualified birth or adoption distributions (up to $5,000 per child).
Emergency personal expense (up to $1,000 each year, if permitted by your plan).
QDRO (Qualified Domestic Relations Order): Payments to an alternate payee due to divorce.
Always consult a tax professional to understand how these rules apply to your specific situation and to ensure you meet any criteria for penalty exceptions.
C. Loss of Future Growth
Withdrawing funds early means those funds are no longer invested and growing tax-deferred within your 401(k). This can significantly impact your long-term retirement savings. Consider the opportunity cost before making a withdrawal.
Step 5: Follow Up and Monitor Your Request
Once you've submitted your withdrawal request, the process isn't entirely over.
A. Confirmation and Processing Time
Confirmation: Voya will typically send you a confirmation (via email or "My Mailbox" on your online account) that your request has been received.
Processing Time: The time it takes for a withdrawal to be processed can vary depending on the type of withdrawal and whether additional documentation or approvals are needed. Hardship withdrawals, for instance, often take longer due to the review of supporting documents.
If you elected direct deposit (EFT), Voya may require your banking information to be on file for a certain number of days (e.g., 7 days) before releasing funds.
B. Monitor Your Account and Mailbox
Online Account: Regularly check your Voya online account for updates on your withdrawal status. Look for messages in your "My Mailbox" or a "History" or "Transactions" section.
Email and Physical Mail: Keep an eye on your email inbox and physical mailbox for any correspondence from Voya, including tax forms (like Form 1099-R) related to your distribution.
C. Contact Voya if Delays Occur
If you experience unexpected delays or have questions about the status of your withdrawal, don't hesitate to contact Voya Customer Service. Have your account information and the date of your request ready.
Tip: Review key points when done.
Key Considerations Before Withdrawing
Explore Alternatives First: Before withdrawing, consider other options like a 401(k) loan (if your plan allows it) or borrowing from other sources, as loans don't incur taxes or penalties if repaid.
Impact on Retirement Goals: Any withdrawal, especially an early one, will reduce your retirement savings. Carefully assess how this impacts your long-term financial security.
Financial Advisor: It's highly recommended to speak with a qualified financial advisor before making any significant 401(k) withdrawal decisions. They can help you understand the full impact, explore alternatives, and strategize for your financial future.
Tax Professional: Consult with a tax advisor to understand the precise tax implications for your specific situation and to ensure you comply with all IRS regulations.
10 Related FAQ Questions
Here are 10 frequently asked questions, structured as "How to," with quick answers to further assist you:
How to check my Voya 401(k) balance?
You can check your Voya 401(k) balance by logging into your Voya online account on their retirement plan website or by calling Voya customer service directly.
How to roll over my Voya 401(k) to an IRA?
To roll over your Voya 401(k) to an IRA, you'll typically initiate a direct rollover request through your Voya online account or by contacting Voya customer service, providing them with the details of your receiving IRA custodian.
How to avoid the 10% early withdrawal penalty on my Voya 401(k)?
You can avoid the 10% early withdrawal penalty by generally waiting until age 59½, or by qualifying for one of the IRS exceptions such as total and permanent disability, certain medical expenses, or taking Substantially Equal Periodic Payments (SEPP).
How to apply for a hardship withdrawal from my Voya 401(k)?
To apply for a hardship withdrawal from your Voya 401(k), you'll need to log into your online account or contact customer service, select the hardship withdrawal option, and be prepared to provide detailed documentation proving an immediate and heavy financial need.
QuickTip: Check if a section answers your question.
How to update my banking information for Voya 401(k) distributions?
You can update your banking information for Voya 401(k) distributions by accessing your account information on the Voya retirement plans website or by calling their customer service. Note that Voya may require this information to be on file for a few days before direct deposits can be processed.
How to find the specific forms for Voya 401(k) withdrawals?
You can find specific forms for Voya 401(k) withdrawals in the "Forms" or "Publications" section of your Voya online account, or by contacting Voya customer service who can direct you to the correct documents.
How to understand the tax implications of my Voya 401(k) withdrawal?
To understand the tax implications of your Voya 401(k) withdrawal, review the "Special Tax Notice Regarding Plan Payments" provided by Voya, and most importantly, consult with a qualified tax advisor for personalized advice.
How to contact Voya 401(k) customer service?
You can contact Voya 401(k) customer service by calling the phone number specific to your plan (often found on your statements or the plan website, typically starting with 1-800 or 1-855), or through their online contact form or live chat if available.
How to determine if my Voya 401(k) plan allows in-service withdrawals?
To determine if your Voya 401(k) plan allows in-service withdrawals, refer to your specific plan's summary plan description or contact Voya customer service to inquire about the rules and eligibility criteria for withdrawals while still employed.
How to get a copy of my 1099-R for a Voya 401(k) distribution?
Voya will typically mail you a Form 1099-R in January of the year following your distribution. You may also be able to access and download it electronically from your Voya online account's "My Mailbox" or tax documents section.
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