Rolling Assets Out Of The 4A's Retirement Plan
This section will instruct how to roll assets out of the 4A's Retirement Plan. For information on rolling money into the plan, see the Rollover section.
When can you get a distribution?
Whether or not you can receive a distribution from your 401(k) is determined by IRS rules and your 401(k) Plan document. You should start by reviewing your Plan's Summary Plan Description, Special Tax Notice and Distribution Notice — all of these documents are available when you login to your retirement account.
Generally, distributable events are:
- Termination of employment
- Upon your disability
- Upon your death
- Over age 59 1/2 (plan specific)
As explained in the Special Tax Notice, the following considerations should be made:
- You will be taxed on a distribution if you do not roll it over to another qualified plan
- If you are under 59 1/2, and do not roll it over, you will also have to pay an additional 10% penalty on the early distribution
Roth 401(k) Distributions are treated separately from Traditional 401(k) Distributions:
- Distributions NOT subject to taxes or penalties occur only if you are over the age of 59 1/2 - and have had the Roth account in-force for at least 5 years - otherwise earnings will be taxable, and will incur a 10% penalty on early distribution.
- The IRS states that a separate check and separate 1099-R are required for Roth 401(k) Distributions, therefore a separate Participant Distribution Election Form is required
- Make sure to take the time and read the Special Tax Notice for Roth 401(k) when taking a Roth 401(k) Distribution
How do you get a distribution?
Before completing a Participant Distribution Election Form, review the Special Tax Notice and Distribution Notice.
1. Complete the Participant Distribution Election Form
2. Return the form to Employer of the Plan for signature as Agency/Plan Administrator
How long will it take to get my distribution?
Once the form is forwarded by the Employer to 4A's Benefits, we will process the distribution request within 5 to 10 business days if all necessary information has been provided. In addition, we will mail a 1099-R at the close of the tax year if you take a distribution or rollover your 401(k). Therefore, contact us if your address changes after your distribution.
Please note distribution rules are subject to change per IRS regulations.
Required reading before taking a distribution
Before taking a distribution, read the Special Tax Notice provided by the IRS, and the Participant Distribution notice. These documents are provided below.