Participant FAQ

What taxes apply for my distribution?

Updated on

The information below should serve as a general guideline only, and does not necessarily represent your full tax burden for your withdrawal. 

Early withdrawal penalties may apply. 

State tax may apply. 

For further questions on your tax situation, please seek guidance from a tax professional. 

Hardship

We will deduct 10% from your hardship withdrawal for federal withholding. You may elect to waive this federal withholding or increase federal withholding by completing a Form W-4R (available on the IRS website) and returning it to your plan sponsor with your hardship distribution request. 

In-Service

If you elect a lump sum cash distribution, we will deduct 20% for federal withholding.

If you elect a rollover, no federal withholding will apply. 

Termination

If you elect a lump sum cash distribution, we will deduct 20% for federal withholding.

If you elect a rollover, no federal withholding will apply. 

Required-Minimum Distribution (RMD)

RMDs only apply to individuals who will be age 73 years or older in the current year. 

The standard federal withholding for an RMD is 10%. However, you may elect any federal withholding amount on your RMD form. 

Death

If you elect a lump sum cash distribution, we will deduct 20% for federal withholding.

If you elect a rollover, no federal withholding will apply. 

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