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Money Purchase

Money Purchase Plan - Initiating a Distribution

A "withdrawal" of funds from your money purchase account is called a distribution.  Different rules apply to withdrawing employer contributions or withdrawing contributions you have made voluntarily.  All or part of your voluntary contributions may be withdrawn twice per calendar year if the amount withdrawn is greater than $200.  Associated earnings, if any, will be a portion of the amount withdrawn and those earnings are considered taxable.  The taxable earnings are subject to 20% federal income tax withholding.

A distribution of all or part of your employer contributions may only be made if one of the following conditions is met:

• You have retired on or after your 48th birthday; or
   
• You have become totally and permanently disabled and terminated from your employer; or
   
• You are terminated from your employer and you have no hours of service at the end of any six month consecutive period (the trustees may waive the six month waiting period if you request the waiver in writing, certify that you are and have been terminated for at least 45 days from the date of your request, and supply proof and certification that you would suffer severe financial difficulties without a waiver); or
   
• The participant has died - the benefits are payable to his/her spouse and/or designated beneficiary.

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In all instances, you (or your beneficiary) must apply for the distribution and elect a form of payment.   If you are married, federal regulations require that your spouse consent to the distribution if your highest account balance has ever been over $5,000.  Your spouse's consent must be witnessed by a notary public or Pension Plan Representative.

Contact the Pension Department at the Administrative Office to request a distribution form.  When you submit the distribution request, you must also supply proof of your age and proof of marital status.

Acceptable proof of marital status include original or certified copy(ies) of your most recent recorded marriage certificate and/or complete divorce decree(s), including finding(s) of fact and any property settlement agreement(s).

Acceptable proof of age is as follows:

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Please note that the taxable amount of any lump sum distribution may also be subject to an additional 10% income tax unless the distribution is for one of the following reasons:

• Your death or disability
• Your retirement on or after age 55
• To pay for unreimbursed medical expenses which are deductible from gross income for federal income tax purposes 

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