Understanding 401(k) Withdrawal Options and Processes

You can access your 401(k) funds under a variety of circumstances, depending on the rules of your employer’s plan. Not all withdrawal options described below may be available to you. To confirm what’s allowed in your plan, visit the 401(k) > Overview page from your account dashboard or review your plan’s Summary Plan Description from the 401(k) > Documents + Forms page.

Who This Applies To

This article is for 401(k) participants who are:

• Currently employed and seeking in-service withdrawals
• No longer employed and requesting a distribution or rollover
• Affected by a plan termination

Types of 401(k) Withdrawals

In-Service Withdrawals (While You’re Still Employed)

Your plan may allow the following in-service withdrawal types:

• Rollover Assets: You may withdraw funds at any time that were rolled into your 401(k) from another retirement plan or IRA.
• Age 59½ Withdrawals: If you're at least 59½, you may be eligible to withdraw your entire vested account balance.
• Hardship Withdrawals: If your plan allows it, you can withdraw funds for specific, IRS-approved financial hardships. Documentation may be required.
• Loans: While not a withdrawal, some plans allow loans from your account. See the Loans Help Center article for details.

Post-Termination Withdrawals (After Leaving Your Job)

Once you're no longer employed with the company, you're eligible to:

• Roll your vested balance into a new retirement plan or IRA (non-taxable event), or
• Take a cash payout, which is taxable and may be subject to penalties if under age 59½.

Plan Termination Withdrawals

If your employer fully closes the 401(k) plan, all participants will be eligible to withdraw their funds after the final plan accounting is completed. Distributions cannot be processed until your employer provides final approval.

How to Request a Cash Distribution

To take a cash payout:

1. Log in to your account 
2. Go to the 401(k) menu > Withdraw/Rollover Out > Apply Now
3. On the Withdrawal Method page, select Cash Payout
4. Follow the onscreen instructions and submit your request

Processing Timeline

Once you submit a distribution request, your withdrawal goes through several review and approval steps:

• Submitted: Ubiquity will review your request within 2–4 business days. We may contact your plan sponsor (employer) if additional information is needed.
• Reviewed: If your request passes Ubiquity's review, we forward it to your Plan Sponsor for final approval.
  • 🔎 Who is your Plan Sponsor?
    • Your Plan Sponsor is your employer. The individual(s) acting on their behalf are known as Plan Administrators. You can identify your Plan Administrator by:
      • Logging into your account at MyUbiquity.com
      • Selecting 401(k) > Overview in the left navigation menu
      • Viewing the Plan Overview page, where the Plan Administrators are listed
  • If your request remains in Reviewed status, these are the individuals you should contact directly to follow up on approval.
• Approved: You’ll receive an email notification once your plan sponsor has approved your request. Ubiquity will then continue processing.
• Trades Complete: Your investments are liquidated and instructions are sent to your plan’s custodian.
• Payment Initiated: The custodian begins processing your payment via check or wire. Timing may vary depending on the method.

To check the status of your request:

• Log into your account
• Scroll to the Withdrawal section on your dashboard
• Click View Details under “What’s Next”

Cash vs. Rollover Distribution

*Rollovers are generally non-taxable unless you roll pre-tax dollars into a Roth account. For Rollover instructions see: How to Request a Rollover Distribution From Your Plan

Important: Wire Transfer Instructions

Different financial institutions have their own specific wiring instructions. If you enter routing and account numbers from a personal account, they may not match your institution’s required wire setup. To avoid delays:

• Contact your receiving institution to confirm exact wire instructions
• Do not use prepaid debit card details—we cannot wire funds to these account types

If you need to update your wire instructions or would prefer to receive a check:

• Email info@myubiquity.com
• Or call 855.401.4357, option 2

Distribution and Loan Fees

*Use the higher fee if your account contains both Roth and Pre-tax funds.

Additional Distribution Fees

You can find your complete Participant Fee Disclosure by logging into your account and visiting:
401(k) > Documents + Forms

Optional 30-Day Waiver

If you're no longer employed and expect additional contributions to your account, you can:

• Wait 30 days after your last contribution before taking a distribution, or
• Waive the 30-day hold and process your request immediately

⚠️ If you waive the waiting period and later receive additional funds, you'll need to submit a new request—and pay another processing fee—for those funds.

Tax Reporting: Form 1099-R

If you took a distribution last year, your plan’s custodian will issue a Form 1099-R by January 31. Most forms arrive by mid-February. Some custodians will mail the 1099-R with the check. 

How to Request a Copy:

• Email info@myubiquity.com (after February 15)
• Please allow 2–3 business days for processing

Tax Notes:

• Rollovers are non-taxable unless converted to Roth
• Cash payouts and offset loans are taxable
• Loans that were offset at distribution must be reported
• Outstanding loans that are not offset do not need to be reported

📌 During tax season, processing times may be longer. Submit requests by April 1 to ensure delivery by April 15.

Need Help?

If you have questions, email us at info@myubiquity.com or chat with us 24/7 by clicking the chat icon after logging into your account.