Once you terminate from employment, you have a variety of options and are eligible to take a distribution at any time.
Wait to take a distribution
When you separate from employment, your money may stay fully invested in RIC. If you choose to leave your money invested in RIC, no forms are necessary. Your pretax money continues to defer taxes (post-tax Roth assets, if offered in your plan, continue to grow tax-free) until you decide to take income or turn age 70 1/2, at which time you must begin taking at least the IRS required minimum distributions annually.
You continue to have access to your account to make investment selection changes, provider changes, or distributions at anytime (some providers may have restrictions and/or fees).
Income options (taxable)
To request a distribution, follow planwithease instructions and contact your provider directly to request the required paperwork. Some of the RIC providers allow you to take income in one or a combination of the following ways (some providers may have product restrictions and fees):
Tax Treatment of distributions
"Qualified" Roth distributions require all the following:
Age 70 1/2
The federal government has established rules for plans like the RIC 403b plan that apply when participants reach age 70 1/2.
Your provider will calculate your required minimum distribution amount upon request. With some of the RIC provider, you can elect to receive the entire value of your account, partial payments (not to be less than your required minimum distribution amount) or you may receive periodic payments over your life expectancy. If you do not elect a lifetime payment option, you have the option to take more than your required minimum amount at anytime.
Purchase IPERS credits
When you file for IPERS benefits in retirement, you may request a transfer RIC pretax 457/401a money to IPERS to purchase eligible service credits. This is a non-taxable transfer. Other tax-advantaged accounts such as IRAs, 401(k)s, 403(b)s, etc., may also be options for funding an IPERS purchase.
To explore the possible benefits of purchasing IPERS and determine your eligibility, review Service Purchase on the IPERS website. If you have questions, contact IPERS toll free at 800-622-3849 (281-0020 in Des Moines) or email them at Info@ipers.org.
If IPERS approves your request to purchase, they will send you a cost quote. You may request to rollover your RIC 403b pretax money to make the purchase. Simply forward to us (fax 515-281-5102) your IPERS Rollover/Transfer form and a copy of your IPERS cost quote; we will request the rollover from your provider. RIC will send you a copy of your rollover paperwork (signed by RIC) and your provider will send you a check for the amount you requested. Forward the check and the IPERS forms to IPERS to complete the purchase.
Be sure to ask your provider if surrender charges or fees will apply.
If you are terminated from employment, you have the option to roll over all or a portion of your 403b assets to another eligible plan. This is a non-taxable event.
If the money you wish to roll is with an active provider, contact them directly to request the required paperwork. Before rolling your money, ask you provider if there are restrictions or penalties .
To request a withdrawal, complete your provider's distribution form and print an approval letter from planwithease.