Withdrawals

You can withdraw money from your account under certain circumstances:

• Rollover withdrawals. You can withdraw all or part of any assets that you rolled over from another plan.
• Before age 59½ withdrawals. If you are not yet age 59½, you can make two non-hardship withdrawals per calendar year. Withdrawal amounts are restricted to after-tax, rollover, and limited Company match contributions and earnings.
• Age 59½ withdrawals. Once you reach age 59½, you can make withdrawals from your entire account balance.
  Note: Age 59½ withdrawals are not subject to the 10% early withdrawal federal penalty tax.
• Disability withdrawals. You can make unlimited withdrawals from your entire account balance if you are disabled and receiving benefits under Union Pacific’s long-term disability program or are receiving a disability annuity under Railroad Retirement or Social Security.
  Note: Disability withdrawals are not subject to the 10% early withdrawal federal penalty tax.
• Hardship withdrawals. You can withdraw money from your account for a serious financial hardship, including:
  
  
  • Purchase of a principal residence.
  • Unreimbursed medical expenses.
  • Tuition and fees for postsecondary education.
  • Prevention of eviction or mortgage foreclosure.
  • Burial or funeral expenses for a spouse, child, or dependent.
  • Certain expenses for repairing your principal residence if the expenses qualify as a casualty deduction.
• Roth 401(k) after-tax withdrawals. You can withdraw all or part of your Roth contributions and earnings. The withdrawal can be tax-free if you meet certain conditions.

Taxes: Taking money from your retirement account can affect how much you’ll have to pay in taxes. You’ll owe taxes on pre-tax money. You won’t owe taxes on Roth earnings as long as you are age 59½ or older and it’s been at least five years since your first Roth contribution. If required by law, Vanguard will withhold some taxes for you. You may need to pay a 10% federal penalty tax if you take money out early.