How to Withdraw Money From 403B Mutual Funds to Pay Off Credit Card Debt
- 1). Pull out a copy of your most recent 403(b) statement and look at your balance. Keep in mind, however, that the current figure may differ from what appears on the statement.
- 2). Contact the human resources department at your employer and ask if the 403(b) plan has a loan provision. Not all 403(b) plans allow loans, but if so, a loan is preferable to withdrawal because you will avoid extra taxes and penalties.
- 3). Obtain the necessary loan paperwork from your employer and fill it out completely. Be sure to include your name, address, Social Security number and 403(b) account number. Submit the completed form to the listed address. Some 403(b) custodians use separate addresses for regular and express mail, so make sure you use the correct address.
- 4). Contact the 403(b) plan custodian directly if you want to withdraw instead of take out a loan. Depending on your age, you may be subject to a penalty up to 20 percent, along with regular taxes on those funds.
- 5). Complete the paperwork from the 403(b) custodian in full. Be sure to include all identifying information, including name, address, Social Security number and account number and the withdrawal amount. Specify whether you want a paper check or electronic deposit. Send the paperwork to the listed address.
- 6). Use the proceeds to pay off your credit card bills. Resist the urge to withdraw more than you need. It is important to keep as much of your 403(b) invested as you can, both to avoid additional penalties and interest and build a retirement nest egg.
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