My dad is 66, retired, and has around $75k in his 401k with ADP. He wants to pull $5k out of his account. ADP sent a form to fill out and I am helping him since he has some questions. On the form there are two sections A and B:
I assume that I should I skip section A and go right to section B. I can click the first check box for a “partial distribution” and enter the distribution amount of $5k. I assume under “payment options” in section B that I should select the first box that says “pay me 100% of the Partial Distribution amount in a cash distribution“. Is this correct? I assume that 100% means 100% of the $5k that I entered.
I'm confused about the last section which asks about “money type election”. It gives me two choices: ”pre tax rollover” and ”after tax rollover”. I don't understand which one to pick or even if I have to select one at all (it says select money type below if desired when I check the box). Can anyone shed some light on what I need to select?
All I want to do is get $5k out of his 401k. I do not want to fill out this form incorrectly, delaying the withdrawal. Do I need to check a money type or just leave this empty? Has anyone ever filled something like this out? I assume he would get a check in the mail?