By investing in Fidelity mutual funds, you place your money in the hands of a highly experienced team of investment professionals. They do the work, so you don't have to. But for those unexpected circumstances that can arise, many plans allow employees to dip into their account balances before retirement. In addition, as long as you repay your loan on time, you won't be subject to withholding taxes or penalties, as you would if you withdraw from your account before retirement. For more information on loans, see our Loans area.
Withdrawals are a different story.
Different plans may allow you to take withdrawals for different reasons. Some plans also allow hardship withdrawals for other reasons. Check with your benefits department. You will need to show your employer proof of how you intend to use the money, and proof that the amount you requested isn't more than enough to satisfy your need. Therefore, the mandatory 20 percent federal income tax will no longer be automatically withheld from your hardship amount as it is from other taxable withdrawals.