Withdrawals While You Are Working
In some cases, you may be able to withdraw funds from your BB&T Corporation 401(k) Savings Plan account while you are still employed. Withdrawals will generally be subject to 20% withholding for federal taxes and applicable state taxes and an additional 10% early withdrawal penalty. You are limited to two withdrawals per calendar year.
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. 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.
The Age 59½ Withdrawal form is available by logging in to PlanTrac and choosing Withdrawals.
Voluntary withdrawals (subject to restrictions) may be available prior to your reaching age 59½ and are subject to 20% withholding for federal taxes and applicable state taxes and a 10% IRS penalty for early withdrawal. You are limited to two withdrawals per calendar year.
The Voluntary Withdrawal form is available by logging in to PlanTrac and choosing Withdrawals.
Hardship withdrawals may be made for the following reasons:
- Costs directly related to the purchase of your primary residence (not including mortgage payments)
- Prevention of your eviction from, or foreclosure on the mortgage of, your primary residence
- Home repairs for your primary residence not covered by insurance (not due to normal wear and tear)
- Tuition, related educational fees, and room and board expenses for the next 12 months of post-secondary education for you, your spouse, children or dependents
- Medical expenses that are not covered by insurance for you, your spouse or your dependents
- Burial or funeral expenses
You cannot receive a Hardship Withdrawal unless you have obtained all withdrawals, other than hardship withdrawals, and all nontaxable loans currently available under all plans maintained by BB&T. If you receive a Hardship Withdrawal, you will not be able to contribute to the BB&T Corporation 401(k) Savings Plan until the first day of the calendar month following a 6-month suspension. After the 6-month suspension, your salary deferrals will resume and your contribution percentage will be the same as it was before the suspension.