TSS - Retirement Plan Vendor Distributions (Withdrawals/Rollovers/Loans)

Retirement Plan Vendor Distributions (Withdrawals/Rollovers/Loans)

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First Published  :Wed Apr 15 15:40:17 GMT 2015
Last Modified  :Fri Nov 17 13:33:38 GMT 2017
Last Published  :Fri Nov 17 13:33:38 GMT 2017
Summary :  A reference for separated employees or active employees 60 years or older who have participated in the 401(a) and/or 403(b) retirement plans.

Response

Primary Information

    The Tufts University 401(a) Basic Retirement Plan and the 403(b) Voluntary Retirement Plan can help you build savings for your retirement years.  For more information on the specifics of your 401(a) and/or 403(b) plans, please see the Summary Plan Description


    Rollovers:
    The 401(a) Basic Retirement Plan does not accept "rollover" contributions from a previous employer’s eligible retirement plan or an individual retirement account ("IRA").


    To the 401(a) – Employees cannot contribute to the 401(a) plan. This plan is Employer-Source (Tufts) only.

    From the 401(a) - In some cases, once you are vested, you may elect to have distributions that would have been paid directly to you rolled over into another employer’s retirement plan or individual retirement account or annuity (IRA).

    In order to make a rollover request from your 401(a) plan into another plan, you must request the paperwork from the appropriate vendor, Fidelity or TIAA.  If you are an active employee, you can see which vendor you selected by looking on your eServe account.Under most circumstances, if you are an active employee, you cannot roll over your accounts into another plan until Separation, unless you are 60+.  Please see the
    Summary Plan Description for more details

    To the 403(b) - Through the 403 (b), you may be able to take "rollover" contributions from a previous employer’s eligible retirement plan or an individual retirement account ("IRA")  into your Tufts 403(b) account.

    From the 403(b) - In some cases, under the 403 (b), if you are a separated employee, you may elect to have distributions that would have been paid directly to you rolled over into another employer’s retirement plan or individual retirement account or annuity (IRA). Under most circumstances, if you are an active employee, you cannot roll over your accounts into another plan until Separation, unless you are 59 ½. .  Please see the
    Summary Plan Description for more details.

    In order to make a rollover request to or from your 403(b) plan you must request the paperwork from the appropriate vendor.  If you are an active employee, you can see which vendor you selected by looking on your eServe account. 


    Withdrawals:
    401(a) Basic Retirement Plan - In general, you may not take "withdrawals" from the 401(a) Basic Retirement Plan while you are active (still employed by the University). However, if you remain employed by the University after your Normal Retirement Date (e.g., your 60th birthday), you may elect to withdraw amounts from your 401(a) Basic Retirement Plan.

    Once you terminate your employment due to Separation or Retirement, and you are vested, you may withdraw all or part of your 401(a) plan funds.

    403(b) Voluntary Retirement Plan - In general, you may not receive benefits from the 403(b) Voluntary Retirement Plan while you are active (employed by the University). However, the following exceptions apply:

    Withdrawals after Age 59½
    Hardship Withdrawals
    Qualified Domestic Relations Orders (QDRO)
    Otherwise,  once you terminate your employment due to Separation or Retirement, you may elect to withdraw amounts in your 403(b) Voluntary Retirement Plan account.

    Loans or Hardships:
    You may not take a loan against your 401(a) account. In order to take a loan or hardship withdrawal from your 403(b) plan, you must request paperwork from the appropriate vendor.  You can see which vendor you selected by looking on
    eServe.

    Please note:  Only active employees are eligible to apply for loans against their 403(b) account.  (Employees are always listed as active with Fidelity and TIAA even if they are no longer employed at Tufts, so the status is only confirmed by Tufts when the loan paperwork is received).


    Fidelity:  (800) 343-0860
    TIAA:  (800) 842-2776

    After filling out the paperwork the participant must sign and have the form notarized if required.The withdrawal and loan forms only need to be notarized if the participant is married, as the plans require spousal consent for all distributions..  Send the paperwork to Tufts Support Services to be signed by the Benefits Plan Administrator.  The forms can be emailed, mailed, faxed or hand delivered.  If the notary used a raised seal, the Benefits Department will require the original copy.  In that case the forms can only be mailed or hand delivered. 


    Tufts Support Services
    62R Talbot Ave.
    Medford, MA  02155

    The Benefits Office will review and sign off on the paperwork if appropriate.  The turnaround time is usually two business days from when the completed, accurate forms are received.  The paperwork will then be sent directly to the vendor.  If you wish to know if the Benefits Office  received the paperwork you can call TSS for confirmation.  NOTE:  Due to the large volume of forms received, the Benefits Office does not follow up with you to indicate that the paperwork has been sent to the vendor and cannot verify that the paperwork has been
    received by the vendor.  Please check with the vendor after a few days (allowing the two business days for Tufts to complete our portion and some time for the vendor to receive and update their system).

    *Common errors that prevent us from processing the paperwork in a timely manner include:
    • neglecting to indicate marital status
      • or – if indicating “married” – neglecting to  obtain a spousal signature or notarization attesting to  spousal consent.
    • incorrect indication of employment status – e.g., “separated from employer” or “still employed”
    • forgetting a signature on the form
    If you are uncertain about an item on a form, please contact the vendor (TIAA or Fidelity) directly for assistance in completing the section.

     

Related Information

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Keywords

    Retirement plans, 401(a), 403(b), Voluntary, Transfer, Rollover, Loan, Withdrawal, Change, Moving Funds, Distributions