Distributions

Distributable Events

Termination of Employment

Termination of employment qualifies as a distributable event. Employers forward a “Termination Notification” to our office for any terminee. Upon the receipt of this form we send former employees Benefit Election forms explaining their options for receiving their account benefit. They may choose between Lump Sum Distributions or Rollovers to their new employer’s retirement plan or a personal IRA account. Participants will be provided Your_Rollover_Options.pdf , which explains taxes and mandatory withholding that distributions are subject to. Participants must forward these forms to our offices upon their completion so the process of paying out their benefit can commence.

Retirement

Participants may withdraw their entire account balance upon reaching retirement age. This age ranges from 60-65 and varies in ever plan. Employers must refer the most recent plan document we provided them. Participants are also provided a “Summary Plan Description” upon their entrance to the plan, where this information is available. To obtain a copy of yours, please contact your consultant via e-mail and a PDF copy will be forwarded to you.

Death

Death is a distributable event in which the account balance of the deceased is paid to their designated beneficiary. Beneficiary is designated by the participant prior to death and announced in a “Beneficiary Designation Form”. If a participant was receiving an annuity from the plan prior to death, their spouse may be entitled to continue receiving 50%, 75% or 100% of the prior annuity amount until their death. These regulations differ amongst plans.

In-Service Distribution

Some plans allow for participants to withdraw their account balance while they are still employed. In-service distribution typically occur no earlier than age

59 1/2. If you wish to request an in-service distribution of your account balance, contact your employer or refer to your “Summary Plan Description” to find out if your plan allows for such withdrawals.

Required Minimum Distribution

At retirement age the account balance of a participant will be entirely distributed or will begin to be distributed yearly in Required Minimum Distributions. These are calculated portions of a retired participant’s account balance.

Disability/Hardship

If a participant is unable to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment which has lasted or is expected to last over 12 months, they qualify for a distribution due to disability.

Some plans allow for hardship distributions to satisfy the amount of urgent financial need. If the plan allows the withdrawal of loans, all loan options must be exhausted and financial need must be proven by qualified evidence, in order for a a hardship distribution to be considered.

How is a participant’s benefit paid?

1. Lump Sum Distribution

2. Rollover to an IRA

3. Rollover to a qualified retirement plan

4. Single or Joint Annuity ( not subject to all plans)

Plan Termination

Employers may terminate the plan at any given time upon giving the Trustee and Plan administrator written notice of termination. Upon the completion of plan termination, all participant’s with account balances become fully vested and will be distributed their benefits immediately.