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|
Before taking a withdrawal, MMBB recommends that members review their situation with a Senior Benefits Specialist.
Withdrawal Prior to Retirement
A request for a withdrawal from your Retirement Only Plan account prior to retirement must be made in writing. The minimum withdrawal is $1,000. In order to take a withdrawal against your Retirement Only Plan account while you are working you must have at least five years of plan participation.
You may withdraw your plan assets, as follows:
- Withdrawal is not subject to IRS Hardship Conditions.
- Prior to retirement, you can make no more than two withdrawals in a 12-month period.
- Withdrawal while working requires 5 years of participation in the plan.
- Once you withdraw money from the plan you cannot put it back into the plan.
- Minimum withdrawal amount: $1000
- Maximum in service Retirement Only Plan withdrawals are equal to 20% of your account balance. Lifetime pre-Retirement total maximum withdrawal amount not to exceed a cap of $50,000.
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.
Requesting a Withdrawal
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 Conduent for processing.
A check will be forwarded to the address of record within three to five business days following.
Deleting or Changing a Withdrawal Request
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.