|Once you leave State employment, you have a variety of options and are eligible to take a distribution at any time.
Wait to take a distribution
If you choose to leave your money invested in RIC, no forms are necessary. When you leave state employment, your money may stay fully invested in RIC 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 have access to your account to make investment selection changes, provider changes, or take distributions at anytime (inactive provider products may have restrictions and/or fees).
Income options (taxable)
To request a distribution, call your provider directly.
You may take income in one or any combination of options shown below.
If you wish to take a distribution from any provider other than those listed above, you will need to complete the RIC Distribution Form. Call the inactive provider to ask if they also require their own distributions form and if withdrawal restrictions or penalties will apply.
Age 70 1/2
The federal government has established rules for pretax plans like the Retirement Investors' Club (RIC) 457/401a plans that apply when retired participants reach age 70 1/2. The IRS requires that you begin taking annual minimum distributions no later than the April following the year that you turn age 70 1/2.
If you fail to begin taking your requirement minimum payments on time, you will be subject to an IRS 50% penalty on the amount you should have taken.
Your provider will calculate your required minimum distribution amount upon request. You may elect to receive the entire value of your account 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.
To request a distribution, please contact your provider.
Tax Treatment of distributions
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 pretax 457/401a 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 within 60 days to complete the purchase.
Once you leave state employment you have the option to roll over all or a portion of your RIC assets. This is a non-taxable event. Please Note: 457 money rolled out of RIC loses its “no age limitation” status.
If you wish to request a rollover, contact your provider