In-Service Withdrawal

A withdrawal made from a plan account before the holder experiences a triggering event.


Some plans like profit sharing and 401Ks allow for distributions to be made before a triggering event occurs. In most other instances, these withdrawals will be penalized according to the 10% standard.



Taking Penalty-Free Withdrawals From Your IRA - If you need to take early distributions, learn under which circumstances you won't suffer expensive consequences.

Borrowing from Your Plan - Left with no alternative but to take money out from your retirement savings? Here are some guidelines.
Related Terms

IRA

IRA Adoption Agreement and Plan Document

IRA Conversion

Non-Qualified Distribution

Ordering Rules

Qualified Distribution

Recharacterization

Reconversion

Required Minimum Distribution

Roth IRA

Spousal IRA

Triggering Event

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