Can I Take Money Out of My Empower Retirement Account (Tutorials)
Taking money out of an Empower Retirement account before retirement can reduce future savings and may result in taxes or penalties.
Retirement plans generally restrict withdrawals until certain conditions are met, with rules varying by plan type and withdrawal reason.
Withdrawals can also affect the amount of money available for future retirement income.
Withdrawal Eligibility Checker
Adjust the fields below to instantly estimate whether you can withdraw from your Empower account, what it'll cost, and which options apply to you.
Distributions taken before age 59½ can trigger a 10% early withdrawal penalty unless an exception applies.
457(b) plans follow different early-distribution rules than 401(k)/403(b) plans.
When You’re Actually Allowed to Withdraw
Distributions from workplace plans hinge on hitting one of a handful of specific trigger events:
- Turning 59½, which is the standard age for penalty-free distributions to become available
- Separating from the sponsoring employer
- Plan termination with no successor plan
- Disability or death with distributions to you if disabled or your beneficiary upon death
- Hardship withdrawals
- Required Minimum Distributions at age 73.
| Account | Access to Money | Early Withdrawal Rule | RMD? | Loans? |
|---|---|---|---|---|
| 401(k) | 59½+; separation; disability; death; hardship (if allowed) | 10% penalty before 59½ unless exception applies | Yes — generally at 73 | Yes — if plan allows |
| 403(b) | 59½+; separation; disability; death; plan rules | 10% penalty before 59½ unless exception applies | Yes — generally at 73 | Yes — if plan allows |
| Traditional IRA | Withdraw anytime | 10% penalty before 59½ unless exception applies | Yes — generally at 73 | No |
| Roth IRA | Contributions anytime; qualified earnings tax-free after 59½ + 5 years | Contributions penalty-free; early earnings may be taxed/penalized | No (owner) | No |
| HSA | Anytime for qualified medical expenses | Before 65: tax + 20% penalty for non-medical use; after 65: taxed but no penalty | No | No |
How to Withdraw Money From Empower?
Step 1: Verify Eligibility
First, you need to determine that you meet a distribution event such as age, termination or hardship.
Next, check your plan’s SPD or talk to HR.
Step 2: Log In or Contact Empower
Go to Empower’s participant portal and sign in.
You can also call Empower’s retirement solutions center at 855-756-4738 for U.S. plans.
Use the same info as your email login if registered.
Step 3: Download the Distribution Form
You can download or request the proper withdrawal form.
For employer plans, this might be called a Request for Distribution or Separation from Service form.
But for an IRA, it may be an IRA withdrawal request form.
If you are confused, you can contact them. In most cases, the plan’s SPD or Empower site will link to these.
Step 4: Complete the Form
Fill in personal info
- Name
- SSN/TIN
- Birthdate
- Address and distribution instructions.
I want you to double-check your SSN and address, as people get it wrong sometimes.
Empower requires your on-file address to match
- Specify the reason (retirement, termination, RMD, hardship, etc.) and
- Amount to withdraw.
Step 5: Select Payment Method
Next, choose how to receive the money:
- Direct Rollover to an IRA/new plan
- Direct Deposit (ACH)
- Mail a Check
- Installments, if your plan allows, set up periodic payments.
Step 6: Submit Supporting Documents
If you elect alternate tax withholding, attach the appropriate IRS W-4 form
For non-U.S. persons, you must attach IRS Form W-8BEN to claim treaty benefits; otherwise, 30% withholding applies.
Step 7: Send or Upload the Request
You can upload the signed form and documents via the Empower website or email, or mail them to Empower.
Make sure all fields are correctly filled to prevent delays or rejection.
Step 8: IRS Notice and Review Period
Empower will send you an IRS Special Tax Notice. You generally have 30 days to reconsider before cashing out.
Step 9: Processed & Distributed
Once Empower has a good request, it reviews it, and the plan administrator may need to approve.
Typical processing can take a few weeks. If your application is approved, the funds are sent via your selected payment method.
Early Withdrawals Before 59½: Penalty Exemptions List
Withdrawing before 59½ usually triggers a 10% IRS early-distribution penalty on top of income tax, subject to many exceptions.
But, there are some penalty-waiving exceptions:
| Situation | Penalty-Free? | Account Types | Key Requirement |
|---|---|---|---|
| Disability | IRA and many employer plans | Must meet IRS disability requirements | |
| Death of account owner | IRA and employer plans | Applies to beneficiary distributions | |
| Leaving job at age 55 or later (Rule of 55) | Certain employer plans | Must meet separation-from-service requirements | |
| Medical expenses | Primarily IRA; some plans | Qualified expenses must meet IRS limits | |
| Higher education expenses | IRA | Must be for qualified education expenses | |
| First-time home purchase | IRA | Subject to IRS lifetime limit | |
| Substantially Equal Periodic Payments (SEPP / 72(t)) | IRA and some plans | Must follow required payment schedule | |
| Emergency expenses | Certain plans/IRAs | Limited amounts and eligibility rules apply | |
| Birth or adoption expenses | Certain plans/IRAs | Subject to IRS limits | |
| Domestic abuse, disaster, or military exceptions | Depends on exception | Specific IRS requirements apply |
Taxes and Penalties on Empower Withdrawals
Income tax applies to every non-Roth distribution as ordinary income, whether traditional 401(k), 403(b), or traditional IRA withdrawals.
| Situation | Tax Impact | Penalty / Notes |
|---|---|---|
| Traditional 401(k), 403(b), IRA withdrawal | Taxed as ordinary income. | 10% penalty may apply before age 59½ unless an IRS exception applies. |
| Roth qualified withdrawal | Generally tax-free. | No penalty if the withdrawal is qualified. |
| Roth non-qualified withdrawal | Earnings may be taxable. | 10% penalty may apply to taxable earnings. |
| Withdrawal before age 59½ | Normal income taxes still apply. | An additional 10% early withdrawal penalty may apply. |
| Direct rollover to IRA or new plan | No current tax. | No mandatory 20% federal withholding. |
| Eligible rollover paid to you (cash) | May become taxable if not rolled over properly. | Generally subject to 20% federal withholding. |
| 60-day rollover | Can avoid tax if completed on time. | Withheld taxes may need to be replaced to roll over the full amount. |
| State taxes | Depends on state tax rules. | Some states exempt or reduce taxes on retirement income. |
| 1099-R reporting | Distribution is reported to the IRS. | Use Form 1099-R when preparing your federal tax return. |
| HSA non-medical withdrawal before age 65 | Taxable as ordinary income. | 20% additional penalty may apply. |
What Happens to the Balance After You Leave Your Job
When you leave a job, Empower and the IRS give you these basic options for your plan balance:
Stay Put
Roll Forward
Go IRA
Cash Out
Whichever path you take, RMDs eventually apply at 73 regardless of employment status if any pre-tax balance remains.
Retirement Plan Withdrawals: Empower FAQs
Yes. Most withdrawals from pre-tax retirement accounts are taxed as ordinary income. Qualified Roth withdrawals are generally tax-free.
Yes. Any withdrawal from pre-tax retirement funds is generally taxable, regardless of the amount. Early withdrawals may also be subject to a 10% penalty.
Only if your retirement plan allows loans. Most eligible plans limit loans to the lesser of $50,000 or 50% of your account balance.
Yes. Withdrawals after age 59½ generally avoid the 10% early withdrawal penalty. Taxes may still apply to pre-tax funds.
Processing times vary by plan. Once approved, ACH deposits and mailed checks usually take a few business days, but the full process may take longer.
Yes. Most eligible cash distributions have 20% federal tax withholding. Direct rollovers generally do not have tax withholding.
You typically need a completed distribution form with your personal information and signature. Additional forms may be required for tax withholding or special situations.
Usually not from an employer retirement plan unless the plan allows in-service withdrawals or loans. Rules depend on your specific plan.
After age 59½, you can generally take withdrawals without an early withdrawal penalty. Required minimum distributions usually begin at age 73 for tax-deferred accounts.
Contact Empower through its customer service channels or online support. Have your plan information and account details available.
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