It depends on your plan. Tax law allows plans to permit “in-service withdrawals” by those who are still employed at the company maintaining the plan. However, plans are not required to offer this option. And if they do, there may be restrictions (e.g., an age higher than 59-1/2 or a certain number of years of participation). If a plan does not allow in-service withdrawals and you still want to take a distribution, see whether you qualify for a “hardship withdrawal” to pay medical expenses, etc. Check with your plan administrator.
An amount taken from income as a prepayment of an individual’s tax liability for the year. In the case of wages, the employer withholds part of every wage payment. Backup withholding from dividend or interest income is required if you do not provide the payer with a correct taxpayer identification number. Withholding on pensions and IRAs is automatic unless you elect to waive withholding.