Retirement savings accounts are meant for, well, retirement. That’s why the IRS places restrictions on letting employees access their 401(k) accounts.
Of course, employers are allowed to include plan provisions that give their employees access to their accounts in certain situations. And in fact providing such access can actually encourage employees to participate in the plan in the first place.
If and when a participant is thinking about withdrawing money from the plan, we want to make sure they have all the information they need to make an informed decision. That’s why our process explains exactly which withdrawal options are available and why some withdrawal options may not be.
And it’s why we will let people know about how taking a loan or other distribution can set them back.
If a participant decides to proceed and submits a request for a loan, you will receive the loan request for final approval. We send you a daily summary email informing you of any new and outstanding distribution requests, and you can go to the “Distributions Request” section of your Betterment for Business dashboard to approve the request.