Hello - I recently learned about the new Secure 2.0 Act which allows you to withdrawal $10,000 or 50% of your vested account balance (whichever is less). My plan sponsor has told me they do not "participate" in this aspect of the new law. However, I rolled over a previous employer's 401(k) to them which they will allow me to withdrawal from that sub-account. If I make a withdrawal from my plan there will it still be exempt even though they have decided not to participate? In other words, could I still make the withdrawal and then just provide the exemption reason on my 2024 taxes to not be charged the penalty? My plan sponsor says they don't care about the reason for my withdrawal and they won't list a reason or ask me to make any certification on their end. I just don't want to be surprised when I file next year and the penalty isn't waived. Can someone please also walk through the mechanics of how an exemption is supposed to normally work in these cases? What role does the plan sponsor need to even play in the process?
