Active provider accounts have no fees or restrictions for investment allocations or provider changes. Inactive providers may have fees or restrictions.
Distributions
Distribution options are determined by:
- Your employment status,
- Your employer plan elections and
- Possible product restrictions/fees may apply in some provider products. Some of the RIC active provider products have no restrictions or fees.
If you have determined you are eligible for a distribution, follow planwithease instructions to make your request.
Distributions While Employed
Possible options for distributions are provided here. Your employer's plan may not allow all of these options. See your employer's plan details.
List items for Distributions While Employed (ERE)
You may access your 403b money:
- When you have terminated employment
- When you reach age 59 ½
- For an approved loan (see your plan details for availability)
- For an approved hardship
To request a transaction, see Transaction Request Process below.
To request a transaction, follow steps in these illustrated instructions.
- Call your provider for the provider’s forms
- Log in to PWE’s website
- Request approval of the transaction
- Print the approval letter
- Submit the approval letter and provider’s form(s) to the provider.
Check your employer's plan details to determine if this option is available in your plan.
Log into planwithease: Need login help?
- Hover over Request Transactions and click on Loans and Withdrawals.
- In the Withdrawals dropdown box, select either Severance from Employment or Age 59 ½.
- Click on GET STARTED.
- Complete the appropriate fields for withdrawal amounts.
- Select Submit and then “I AGREE”.
- Place cursor on Documents and select Reports/Letters.
- Click on the arrow by Reports /Letters Group. Print the Approval Letter and send it to the provider along with the provider’s withdrawal form.
Check your employer's plan details to determine if this option is available in your plan. See provider loan requirements
Log into planwithease: Need login help?
- Hover over Request Transactions and click on Loans and Withdrawals.
- In the Loans drop down box, select the type of loan you are requesting. The eligible amount is based on IRS requirements, which is the lesser of $50,000 or 50% of your account balance (minus any existing loan balance over the previous 12 months).
- Click on GET STARTED.
- Click on the applicable provider’s name and enter the requested amount of the loan.
- Select Submit and then “I AGREE”.
- Place cursor on Documents and select Reports/Letters.
- Click on the arrow by Reports /Letters Group. Print the Approval Letter and send it to the provider along with the provider’s loan application.
Your plan may allow a hardship withdrawal option (view your employer's plan details). You must meet strict federal guidelines to be approved for the distribution. If your application is approved, the distribution is taxable as ordinary income.
A distribution of 403b employee contributions can only be made if the distribution is both:
- Due to an immediate and heavy financial need.
- Limited to the amount necessary to satisfy that financial need.
Situations that might qualify for withdrawal:
- unreimbursed medical expenses
- funeral expenses (legal dependent)
- purchase of main residence
- education costs for you or a dependent
- uninsured damage to primary residence
- foreclosure of or eviction from residence
You are not eligible to receive a payout from your RIC 403b account for any of the following:
- warding off bankruptcy
- divorce
- overdue bills
To apply for a hardship withdrawal, complete your provider's Financial Hardship Form and print an approval letter from planwithease PDF. Some inactive providers may have fees for distribution.
You may begin to take distributions from your account(s) at age 59 1/2 even if you are still employed.
With some of the RIC active providers, you may elect to receive the entire value of your account or you may receive partial lump sums, periodic payments in a variety of ways including lifetime payments, or rollover to another eligible plan.
Active provider accounts do not need planwithease or RIC approval for withdrawals at age 59 1/2. Contact the RIC active provider directly to request a withdrawal.
Inactive provider accounts require that you print an approval letter from planwithease PDF and send it with the provider's distribution form to the provider.
Distributions for Former Employees
Once you leave employment, you have a variety of options and are eligible to take a distribution at any time.
List items for Distributions for Former Employees (ERE)
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 reach the IRS required beginning date for required minimum distributions (RMD).
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).
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):
- Total lump sum distribution (ask if there surrender charges)
- Partial lump sum distributions
- Systematic/periodic payments (flexible)
- Lifetime payments (irrevocable)
- 403b Pretax Assets
Taxable distributions of pretax 403b assets are taxed as ordinary income and reported on an IRS 1099 Form. 403b assets have no penalties for qualified withdrawals - 403b Roth Post-tax (Roth) Assets (if allowed in your plan)
Roth contributions are tax-free at distribution but the earnings (if any) are tax-free only if qualified.
Qualified Roth Distributions
- You have a distributable event
- Separation of employment
- Age 59 ½
- Disability
- Death
- You have held your account for 5 years or longer and
- You are either 59 ½ or older, disabled, or deceased
The IRS requires that you begin taking annual minimum distributions by the IRS required beginning date.
If you fail to begin taking your requirement minimum payments on time, you will be subject to an IRS 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.
If you have determined that you are eligible for a distribution, follow planwithease instructions to make your request.
When you file for IPERS benefits in retirement, you may request a transfer of retirement account assets from a pretax 403b, 457, 401a, 401k, and tax-deductible or rollover IRA to IPERS to purchase eligible service credits.
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 Info@ipers.org.
If IPERS approves your request to purchase, they will send you a cost quote.
Rollover Process
- Contact your RIC investment provider and ask if they require you complete their form. Be sure to ask your provider if surrender charges or fees will apply.
- Forward to us your IPERS Rollover/Transfer form and a copy of your IPERS cost quote electronically or by fax (515-281-5102).
- RIC will request the rollover from your provider and send you a copy of your rollover paperwork (signed by RIC).
- 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.
If you leave 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.
Changes
Your RIC 403b accounts are very flexible and many features may be changed at anytime. Active provider accounts have no fees or restrictions for changes to your investment selection for existing assets and/or future contributions or for provider exchanges. Inactive providers may have fees or restrictions.