State of Michigan 401(k) and 457 Plans

The Main Purpose of a Retirement Savings Plan is to Invest Money for Retirement

When you’re saving for retirement you are setting aside money for your future, not for short-term needs like buying a car or paying for college. And, as a retirement plan, your ability to receive payment is limited to certain specified events.

Prior to your retirement you may find it necessary to tap into your plan for expenses by making withdrawals. You should consider all of your available options before making withdrawal related decisions. Remember, a defined contribution account is intended for long-term investing and retirement planning purposes.

When you are ready to retire, it's time to take a distribution from your plan.