Your RIC accounts are very flexible when it comes to change and distribution options. When your goals, risk tolerance, or retirement income needs change, ask a provider representative to help you make changes to your accounts, if necessary.
If your name, address, or beneficiary changes, you must contact your provider to update the information.
Your employment status and circumstances determine what distribution options are available to you. RIC active provider products have no surrender charges or penalties for eligible distributions.
Your in-service distribution options are limited and do not include a loan provision. Distributions while employed are limited to:
an approved unforeseeable emergency,
a qualified small account cash out,
attainment of age 70 1/2, or
a purchase of qualified IPERS credits.
List items for Distributions While Employed (PSE)
The unforeseeable emergency provision may allow you to withdraw funds from your 457 employee contribution account due to a financial hardship if you meet strict federal guidelines. To apply for an unforeseeable emergency withdrawal, complete an
unreimbursed medical expenses & related lost wages
funeral expenses (legal dependent)
loss of spouse’s employment or wages
foreclosure of or eviction from residence
If your application is approved, the distribution is taxable as ordinary income.
You are not eligible to receive a payout from your Retirement Investors' Club (RIC) account for any of the following:
purchase of a home
college tuition
warding off bankruptcy
divorce
overdue bills
If you are currently employed by the employer offering this RIC plan, you may qualify for a cash out distribution. Cash out distributions are taxed as ordinary income. Funds will be paid if you meet ALL of the following:
you have not made contributions to the Retirement Investors' Club (RIC) for at least two years (24 months) and
your total 457 accumulated account value is $5,000 or less and
you have not previously received monies from the account, other than for an unforeseeable emergency.
To request a cash out, please complete the RIC Distribution Form. Some inactive providers may have fees for distribution. Please consult with your investment company to determine if surrender charges apply to your account.
You may begin to take distributions from your accounts at age 70 1/2 even if you are still employed. The federal government has established rules for plans like the Retirement Investors' Club (RIC) that apply when participants reach age 70 1/2.
You can elect to receive the entire value of your account or you may receive periodic payments over your life expectancy. To request a distribution, please complete the RIC Distribution Form. Please consult your investment company's representative to determine what payment options are available in your investment.
You may contribute to your account while you are employed, even if you are receiving distributions.
After Employment
Your distribution options after you leave employment are very flexible. Your 457 account has no age limitation on cash distributions at retirement, whereas your 401(a) employer match account may be subject to an IRS 10% penalty on withdrawals made prior to age 59 1/2.
Don't make the mistake of rolling your 457 account to an IRA or other eligible plan without considering the impact of the receiving plan restrictions and costs.
