I've never heard of someone being unable to access their 401k for any reason. I can take my 401k out but I have to pay a tax penalty because I am not 59.5. Maybe they have a clause in their contract. I didn't sign a contract and am an at-will employee and can be fired at any time.
It's because she's considered an active employee. Active employees cannot take money out of their 401k except in limited circumstances. Once an employee is terminated, they can take the money and do a rollover or keep some (and possibly incur tax penalties).
I've never heard of someone being unable to access their 401k for any reason. I can take my 401k out but I have to pay a tax penalty because I am not 59.5. Maybe they have a clause in their contract. I didn't sign a contract and am an at-will employee and can be fired at any time.
Some companies won’t let you take out the matched portion if you haven’t worked for a certain amount of time…vesting schedule is the term.
It's because she's considered an active employee. Active employees cannot take money out of their 401k except in limited circumstances. Once an employee is terminated, they can take the money and do a rollover or keep some (and possibly incur tax penalties).