Hardship Withdrawals

A hardship is defined as an immediate and serious financial need arising from:

• Uninsured medical expenses.
• Costs associated with the purchase of participant’s principal residence, excluding mortgage payments.
• Payment of post-secondary education tuition and fees for participant, spouse, or children for the next 12 months.
• Payments needed to prevent eviction from participant’s principal residence, or foreclosure on the mortgage on that residence.
• Funeral expenses for participant, spouse, parents, or dependents.
• Repair of damage to participant’s principal residence.

Hardship withdrawals are taxable. In addition, you may be subject to a 10% penalty tax. If you make a hardship withdrawal, you are not eligible to contribute to the Plan (or any other employer sponsored retirement plan) for the next 6 months.

Retirement Distributions

Distributions after age 59 1/2 are not subject to early withdrawal penalties. Flexible distributions can range from small monthly installments to the full lump sum in one payment. Minimum monthly distributions are required when a participant reaches age 70.5 or when they retire, whichever is later. If a participant becomes disabled, distributions are available before age 59.5.