When saving for retirement through a 403(b), one does not expect to need their hard-earned savings before retirement. However, there are instances when savings and other sources are unavailable. Your 403(b) savings could be an option as outlined on the Benefits website and in this article.
It’s important to understand your options and the impact of any withdrawal before taking money out of your retirement account. We recommend reaching out to a Fidelity or TIAA financial consultant to review your current situation, along with your short- and long-term financial goals, before making any decisions.
403(b) Plan Loans
If you need to access your 403(b) savings while you are still working, the plan allows for loans from your account. Employees with an account at Fidelity may be eligible for a loan of up to 50% of their 403(b) account balance. Participants with an account at TIAA may be eligible for a loan of up to 45% of their 403(b) account balance. Total outstanding loans from the 403(b) plan may not exceed $50,000.
- To request loan information from your Fidelity account, call (800) 343-0860.
- To request loan information from your TIAA account, call (800) 842-2776.
403(b) Plan Hardship Withdrawals
Under certain circumstances, hardship withdrawals are available from your 403(b) account, to help you meet an immediate and heavy financial need. The withdrawal amount is limited to the amount of funds needed to cover the expense, or your total plan contributions (excluding rollover amounts), whichever is lower. You may request a hardship withdrawal to pay for the following expenses:
- Medical expenses for yourself, your spouse, children, or dependents
- Costs directly related to the purchase of your principal residence (excluding mortgage payments)
- Tuition, related fees, and room and board expenses for the next 12 months of postsecondary education for yourself, your spouse, children or dependents
- Payments necessary to prevent eviction from your principal residence or foreclosure on the mortgage for that residence
- Funeral expenses for your spouse, children or dependents
- Certain expenses to repair damage to your principal residence
To request a hardship distribution from your Fidelity account, please call (800) 343-0860. To request a hardship distribution from your TIAA account, please call (800) 842-2776.
