Replies

See if your 401(k) plan offers a non-hardship early withdrawal.

I checked. No in-service withdrawals unless for hardship, and only then under extreme cases. No loans either.

I can understand the reasoning, if you are under the assumption that 401(k)s will exist in their current form indefinitely, which was the case when the plan was set up.

But it's not looking like that is going to be the case for much longer, and I can't get them to consider revising the plan. I don't think many people have their eyes open to what's coming down the road - maybe they just don't want to see.

I understand you are very limited in your ability to have your employer modify their plan document to include non-hardship withdrawals. Many new plans have them, though. It does benefit the highly compensated employees to have the NHEW feature, and if your employer has NOT reviewed their plan (and documented it) they are taking a huge risk. If I were you I would ask your employer to speak with their attorney about the NEW business and PERSONAL risks they face if they do not have documented proof of a plan comparison under the new ERISA laws. They will be shocked, and it might just give you some leverage. I am totally serious; most business owners have no clue of their new fiduciary responsibilities as of this summer. If they listen to you they will go from disbelief to gratitude quickly.