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403(b) Supplemental Retirement Options
Rights and Privileges after Termination of Employment
- Upon termination of employment and completing the vesting period participants may:
- Request a rollover of a portion or the total balance to an IRA, another employer plan, or a qualified retirement plan
- Request a full or partial distribution.
- Leave the funds in the account.
- Withdrawals are subject to taxes as these funds were contributed on a pre-tax basis. Generally withdrawals are subject a 20% mandatory Federal Tax rate.
- The exceptions to the 20% tax are rollovers and electing a lifetime annuity
- When a participant reaches age 70 ½ and is no longer employed, they are required by law to begin receiving a minimum distribution of their balance.
403(b) Participants Responsibility
- Participant must contact the investment company to request forms for a withdrawal or a rollover.
- Participants should be aware of any restrictions regarding withdrawals from guaranteed or fixed funds.
- Forms must be signed by an authorized representative of OU to verify termination.
- Funds can be received in a shorter period of time if an electronic deposit is elected on the withdrawal form.
- Notifying investment companies of a change of address is the participants’ responsibility.
- Participants receive quarterly statements.
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