Please help with deferred compensation plan…
Hello- I have a deferred compensation plan through the City of San Francisco. There is only about $21,000 currently in the account. I know this is going to sound stupid, but I really want to take the money out and pay off my credit card bills so I can just breath again. I have a retirement with the City and don’t need this deferred compensation plan really. Is there any way I can get this money out? They have told me I cannot take the money out unless there has been an extreme hardship. I understand I will be taxed, but I’m being burried by credit card debt which I am too slowly chipping away at. How can I get the money out? Thanks
Permalink Submitted by Alan Spross on Fri, 2010-02-12 19:50
It sounds like the plan has a hardship withdrawal provision, and if your situation meets the plan requirements for hardship, you are allowed an in service distribution up to a certain limit. You will have to get the particulars from the plan administrator unless you have been provided with a summary plan description (SPD) that covers the details.
Since the plan in non qualified, there is no early withdrawal penalty due on your distribution.