The Retirement Plan is designed for long-term savings for retirement. However, if you have a financial need that cannot be met through any other means, you may be eligible for a loan or partial withdrawal from your MMBB Retirement accounts. Withdrawals and loan defaults will reduce the financial resources you will have at retirement. Any loans or withdrawals should be considered after all other resources have been exhausted.

The minimum amount you can borrow from the Retirement Plan (RP) or Tax-Deferred Annuity (TDA) is $1,000 and the maximum is approximately 20% of your account value, minus any previous withdrawals, and cannot exceed $50,000. The $50,000 maximum is reduced by the highest outstanding loan balance(s) during the past 12 months. The $50,000 maximum includes any outstanding loans from any of your MMBB retirement plan accounts.

You repay your loan, with interest, back to your account. The interest rate is set at 1% above prime as quoted in The Wall Street Journal at the beginning of the month your loan is approved.

Withdrawals from your RP and TDA accounts before retirement are permitted after you have withdrawn eligible TAS money. The minimum amount of a partial distribution is $1,000, and the maximum is not more than approximately 20% of your account, less any prior withdrawals and outstanding loans. However, there is a $50,000 lifetime maximum on partial distributions prior to retirement. Your withdrawal will be taxable as ordinary income in the year received and may be subject to an additional 10% tax penalty if you are under age 59.5 at the time you withdraw the funds.

Because tax laws change from time to time, you should check with a tax specialist or financial advisor before making any decisions about distributions from your account. The following are some general guidelines:

• Monthly premiums paid on your behalf, plus all earnings from investments, remain tax free as long as your account remains in the Plan.
  
  
• If you are ordained, you pay no income tax on the retirement benefit you claim as housing. The amount of retirement benefits that can be claimed as your housing allowance is the lesser of:
  
  
  • The fair rental value of your furnished home, plus utilities; or
    
    
  • Your actual housing expenses.
    
  
  
• Funds not converted to your retirement annuity continue to enjoy tax-deferred status as long as the money remains in your account. The IRS requires minimum distribution to begin the year following the year you reach 70.5 if you have stopped working for your employer.
  
  
• Amounts you borrow from your account are tax free. However, defaulted loans are declared as taxable income and may be subject to a 10% tax penalty if default occurs before age 59.5.
  
  
• You may be eligible to roll over part or all of your account to a qualified retirement plan or an IRA when your service ends.
  
  
• All distributions are treated as ordinary income in the year received and may be subject to a 10% taxpenalty if received before age 59.5.
  

Your Retirement Plan includes a variety of key advantages for you:

• Your account grows through invested funds.
  
  
• You may direct your account among the plan's investment funds.
  
  
• Your account principal and all earnings are tax deferred.
  
  
• Your variable annuity payments in retirement are designed to keep pace with inflation.
  
  
• You are 100% vested in your Retirement Plan account from day one, which means you have a right to the value of your account according to the terms and conditions of the plan.