You may withdraw up to 100% of the value of your account if:
- you are retired from MIT or your employment at MIT has otherwise terminated, regardless of your age (subject to any applicable penalties)
- you are working at MIT half-time or less and you are age 59½ or older
Receiving Your Retirement Payments
You may choose to begin receiving retirement payments any time after your employment ends or you reach the age of 59½ and are permanently scheduled to work 50% or less of the normal full-time work schedule. If you leave MIT, you can start taking withdrawals from the 401(k) without tax penalty after age 55.
Federal law requires that you begin receiving payments by April 1 following the year in which you turn 73 (age 72 if your birth date is after June 30, 1949 and before January 1, 1951, or age 70½ if you attained age 70½ prior to January 1, 2020), unless you are actively employed by MIT. If you are not actively employed past age 73 (age 72 if your birth date is after June 30, 1949 and before January 1, 1951, or age 70½ if you attained age 70½ prior to January 1, 2020), you must start receiving minimum required distributions (referred to as MRDs) or you will be subject to severe tax penalties.
Tax Treatment
You will pay federal and state income taxes on your pre-tax contributions and accumulated investment earnings when you receive payments or withdraw money from your 401(k) account.
You will pay no additional taxes on either your Roth post-tax contributions or accumulated investment earnings as long as your withdrawal is after age 59½ and at least five years after your first Roth contribution was made.
Find Out About Your Options
- You can review full details of your distribution options and the steps you need to take to receive payments in the Distribution Options Brochure below.
- Obtain a printed copy of the brochure by calling a Fidelity Investments Retirement Services Specialist toll-free at (877) MIT-SAVE or (877) 648-7283.
- Access information about your account through Fidelity NetBenefits.
