I am going on maternity leave and would like to take extra time off. It will cost a lot of money to take extra time off, so I was wondering, can you take out money from retirement? We did it once with my husband's retirement plan and I was wondering if I can do it with mine.
If it’s possible financially to leave your retirement plan alone, you may want to consider it. Once you take money out of the plan, you lose any opportunity for future compounding on the money. In addition, depending on the product or products you hold in your 403(b) plan, there may be fees and expenses – such as back-end sales loads with certain mutual funds or surrender fees with annuities – that will reduce the amount you can cash out. In addition, you may have to pay income taxes and a 10% tax penalty (penalty does not apply to 457 plans) if you withdraw the money. If you are considering a plan loan, consult your district to find out whether it offers plan loans and what rules apply.
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