A withdrawal is the ability to take money out of the plan while you are still employed. A withdrawal differs from a loan, because you don’t have to repay a withdrawal.
To determine if a loan or a withdrawal is the right course of action for you, consider the following factors below:
|You don’t pay taxes if repayments stay on schedule||Usually, you will have to pay taxes|
|You have to repay it, plus interest||You cannot repay it|
|Your plan balance is temporarily reduced||Your plan balance is permanently reduced|
|You can continue to participate in the plan||Certain withdrawals cause a 6-month suspension of contributions|
Before taking a withdrawal, MMBB recommends that members review their situation with a Senior Benefits Specialist.
A request for a withdrawal from your Comprehensive Plan account prior to retirement must be made in writing. The minimum withdrawal is $1,000. In order to take a withdrawal against your Comprehensive Plan account while you are working requires five years of service. Comprehensive Plan premiums made on behalf of disabled members are not eligible for withdrawal.
You may withdraw your plan assets, as follows:
Members with existing core and Plan-to-Plan transfer accounts as of December 31, 2008 who transfer money from another 403(b) plans into the plans on or after December 31, 2008 will have their current account subject to the plan rules as of December 31, 2008. Any subsequent Plan Transfers will be subject to the five years of service restriction on Plan Transfer Account Withdrawals.
If you are a Member with a Plan Transfer Account, and if applicable, you have satisfied the 5-year service restriction, you may request a Plan Transfer Account Withdrawal.
You may withdraw all of your plan assets, as follows:
All withdrawal amounts will be taken proportionately from your applicable investment funds, both Non-Housing Allowance and Housing Allowance. You cannot specify the investment funds from which your withdrawal should be taken. You can reallocate your remaining account balance among the available investment funds.
If eligible, you may defer paying taxes at the time you take a withdrawal by directly rolling over your eligible withdrawal to another qualified plan or IRA. Not all employer plans accept rollovers. You should check with the plan’s administrator before electing a direct rollover of your after-tax contributions to a qualified plan.
You can check the amount available by logging into www.mmbbaccounts.org and going to the Account Details section.
To request a withdrawal, you must speak with a Senior Benefits Specialist.
The completed paperwork must be returned to MMBB for approval. If approved, the form will be forwarded to Xerox for processing.
A check will be forwarded to the address of record within three to five business days following.
If you have requested a withdrawal and decide that you do not wish to complete the withdrawal, do not return the withdrawal package. Withdrawal packages automatically expire 90 days from the date of request.
To delete or change a withdrawal once you have mailed back the form, you must contact a Senior Benefits Specialist.