Talked to my 401 k (Fidelity) administrator today.
First question :
I want to withdraw about $20K in 2016,. What is the process?
For withdrawals after termination or retirement, you can:
a) get a lump sum payable in cash
b) direct rollover to IRA
c) partial rollover to IRA and rest in cash
I do see this is stated in the fine print on page 52 of one of my many 401 k documents; well there was one more option but it's not meaningful to me.
I didn't ask any more questions because this answer is a problem for me.
This appears to be a major issue with my 401 k plan. I had thought to withdraw 2-3% from the 401 k as needed for several years/decades. Apparently this is not possible. Correction: unless I wait till 70 1/2 and go with the MRD/RMD distributions.
This pretty much forces me to rollover the 401 k when I start needing the money.
The rep told me this policy is common for many or most 401 k plans.
I wonder what else I don't know.