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401(k) Withdrawals and Loans
If you find yourself in a sudden cash crunch, you can turn to your BB&T Corporation 401(k) Savings Plan (Plan) for help. The BB&T retirement benefits are designed to help you meet your unique set of goals, and you may be eligible to withdraw or borrow funds from your Plan to help you achieve them.
It's important to keep in mind that if you take money out of your Plan now, you may run the risk of running out of money during your retirement. However, borrowing or withdrawing funds from your account is an option when you're facing a financial emergency.
There are three types of withdrawals you can employ to withdraw funds from your Plan:
- Age 59½ Withdrawals: Once you reach age 59½, you may withdraw your entire account balance or any portion thereof, even if you are still employed with BB&T. The withdrawal will be subject to 20% withholding for federal taxes and applicable state taxes, but you will not incur the 10% IRS penalty for early withdrawal.
- Voluntary Withdrawals: Voluntary withdrawals (subject to restrictions) may be available prior to your reaching age 59½ and are subject to 20% withholding for federal taxes, applicable state taxes and a 10% IRS penalty for early withdrawal.
- Hardship Withdrawals: If you have exhausted your other withdrawal and nontaxable loan options, you may be able to withdraw funds from your account in times of hardship for such expenses as medical expenses not covered by insurance and funeral costs.
For more information about withdrawals from your Plan, including forms and restrictions, visit the Withdrawals While You Are Working page on BBTBenefits.com.
In addition to withdrawals, you can access the funds in your Plan in the form of loans. You may borrow from your Plan in the form of a loan once per plan year. The amount you may borrow is limited by rules under tax law, and the minimum loan amount is $1,000. Loan interest rates will be BB&T prime rate plus 1%. Your account will be charged a $100 administrative fee per loan. Generally, loans must be repaid through payroll deductions with after-tax dollars over a period of one to five years. You can request one loan per calendar year.
Learn more about BB&T 401(k) Savings Plan loans.
If you have any questions, please contact the Human Systems Service Center at 800-716-2455, option 1.
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