The phrase refers to the process of withdrawing funds from a 401(k) retirement savings plan managed by Merrill Lynch that is offered to Walmart employees. This involves liquidating the assets held within the 401(k) account and receiving the value as a cash distribution. For instance, a Walmart associate nearing retirement may elect to initiate this process to access their accumulated retirement savings.
Accessing these retirement funds offers immediate financial resources. This can be beneficial during periods of unemployment or unexpected expenses. However, it’s crucial to understand that withdrawing funds before reaching retirement age typically incurs penalties and income tax liabilities. The impact of these taxes and penalties can significantly reduce the actual amount received.
