Once your withdrawal request is received, we will review the inquiry. Our review process consists of the following:
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Validation: Your request will be reviewed to confirm it is valid and complies with all plan rules. This step also includes fraud verification, depending on the type of loan or withdrawal request.
- Note: This step can take up to 5 days from submission to completion.
- Approval: Once verification has been made, an approval can be issued.
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Investments: After approval is granted, your investments will be sold in order to generate the requested amount of funds.
- Note: After approval, instructions are sent to the custodian on the same day, and if prior to 2 pm EST, trades will be placed that day.
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Payment: After funds are generated, payment will be issued.
- Note: After a 2-day settlement time, the cash is sent to the payment processor. If via ACH, it may take up to another 2 business days to reach the bank account. If by check, please allow for another 5 days for USPS processing. Vestwell also has the capability to send FedEx checks.
A total processing timeline of 10 business days should be expected from the moment that the form has passed verification and fraud checks.
Why Do I Need Approval to Access My Money?
Any request for a loan, distribution, or withdrawal of any type must be evaluated for authenticity to confirm that the distribution request was submitted and authorized by you. This is to prevent any fraudulent requests.
What Are the Fees and Potential Tax Implications?
Most withdrawals and rollovers have a $125 processing fee. For a complete breakdown of all the fees for withdrawals, navigate to your "Documents" page and select the "Plan" tab. Then, download the "Fee Disclosure" document.
Your withdrawal request may have tax implications. Vestwell is not a tax advisor. We recommend that you consult a professional if you have any concerns.
Click here for the IRS guide on Hardships, Early Withdrawals, and Loans.