How Do You Withdraw Funds From A 403(B) Plan?
When you put money away in a 403(b) plan, you shouldn’t withdraw the funds until retirement. This allows the funds to grow tax-free until you withdraw them. You will likely be withdrawing funds in an amount less than the income that you earned while working, so you will be taxed at a lower rate. In certain circumstances, you can also distribute funds from your 403(b) plan before your retirement. Determine your eligibility for withdrawing funds from your 403(b) plan. In most cases, you must be at least 59 1/2 years old to withdraw funds from your 403(b) plan. Among the exceptions that allow you to withdraw funds at a younger age are disability and demonstrated financial hardship. Determine if you are required to take a distribution from your 403(b) plan. When you retire, you must begin taking withdrawals before April 1 of the year following the one in which you turn 70 1/2 years old. You must continue to take withdrawals each year. Calculate the amount that you would like to withdraw fr
