Distributable events
Options for distributions while employed are limited to the following conditions (loans are not an option):
- You have experienced an unforeseeable emergency
- You qualify for a small account cash out
- You are at least age 70 1/2
Unforeseeable emergency (457 account only)
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 Unforeseeable Emergency Withdrawal Form. This distribution is taxed as ordinary income.
Situations that might qualify for withdrawal:
- unreimbursed medical expenses & related lost wages
- funeral expenses (legal dependent)
- loss of spouse’s employment or wages
- foreclosure of or eviction from residence
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
Small account cash out provision (457 account only)
If you are currently employed by the State, you may qualify for a cash out distribution from your 457 account. 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 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.
Age 70 1/2
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 may elect to receive the entire value of your account, partial withdrawals of at least your required minimum amount annually, or periodic payments based on 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.