Can employees withdraw money from their defined contribution plan while still working?
In most cases, the answer is no. Most distributions from VRS defined contribution plans occur only after an employee leaves covered employment and completes a break in service of at least one full calendar month to comply with applicable IRS requirements.
Participants can make emergency withdrawals when facing certain financial hardships resulting from:
- Illness or accident
- Casualty loss of property
- Imminent foreclosure of or eviction from primary residence
- Medical expenses
- Funeral expenses
Participants can self-certify withdrawals up to $2,500 once every two years. Withdrawals for higher amounts require documentation. For more information, contact Voya Financial at 877-327-5261.
NOTE
The Code of Virginia does not allow active VRS members to borrow or withdraw funds from their defined benefit member contribution accounts.