When making an in-service withdrawal from a 401k with your current employer at under age 59.5, which earnings are you allowed to include in the withdrawal?
Are you allowed to withdraw earnings on employee (your) pre-tax contributions, or only on company matching funds?
- Employee pre-tax contributions: $5000
- Earnings on employee pre-tax contributions: $1000
- Employer matching contributions: $5000
- Earnings on employer matching contributions: $1000
Is the total allowed for an in-service withdrawal $6000 (from 3 and 4) or $7000 (from 2, 3, and 4)?