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WebsiteLink - Online - Distribution - Guide

The document provides information about distribution options from retirement plans including moving funds to an IRA, leaving funds in the current plan, cashing out which incurs taxes and penalties, and rollover options. It explains what a rollover and IRA are, how vesting works, why address confirmation is needed, and how forms can be attached to a rollover request.

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32 views5 pages

WebsiteLink - Online - Distribution - Guide

The document provides information about distribution options from retirement plans including moving funds to an IRA, leaving funds in the current plan, cashing out which incurs taxes and penalties, and rollover options. It explains what a rollover and IRA are, how vesting works, why address confirmation is needed, and how forms can be attached to a rollover request.

Uploaded by

yanichik20
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Online Distribution – Frequently Asked Questions

What are my distribution options?


You have four options to choose from. 1) Moving into a rollover IRA. 2) Leave in your
former employer’s plan if applicable. 3) Move into your new employer’s plan. 4) Cash
out and incur taxes and potential penalties.

What is my Vested Distribution Amount?


This is the amount of your account which you are entitled to take with you. Only
employer contributions such as match and profit sharing may be subject to a vesting
schedule. Based on your years of service with the Plan Sponsor the vesting schedule
determines how much of the employer contributions you own.

What is a rollover?
A rollover occurs when you move your money from a qualified retirement plan, such as
an employer-sponsored retirement plan, into a Traditional IRA or another qualified
retirement plan. Typically, you are eligible for a rollover only when you are eligible to
receive a distribution from a qualified plan. Since you are not taking possession of the
proceeds, taxes and penalties are not applied.

What is an IRA?
Individual Retirement Account (IRA) is a type of personal retirement savings vehicle.
Three important kinds of IRAs are Traditional, ROTH and SIMPLE.

Why do I need to confirm my address?


At the time of your distribution, a Form 1099R will be sent to the address we have in
the system. Please review your home address information by selecting ‘Participant
Summary’ under the ‘Account Summary’ tab. If you need to update your address
either contact your former employer to request the change, or complete and submit to
USI Advisors the ‘Address Change Request’ form located under the ‘Reference’ tab.

Why is my distribution amount requested different from the amount received?


Any distribution amount provided during the distribution request process shows your
current account value (as of the previous market close). The actual amount of your
distribution will depend on the value of your investments at the time of the liquidation,
which will occur in 1 to 2 business days. The actual distribution amount may be more
or less than the distribution amount shown during this process due to market
fluctuation.

How can I attach forms with my rollover request?


No forms can be forwarded with the rollover check when the distribution is completed
online. If additional information must accompany the check, please request the check
be mailed to you by providing your home address in the institutional address fields.
The rollover check will be issued payable to the rollover institution, FBO (For Benefit
Of) your name.
Can I do a partial rollover?
If applicable under your employer’s plan document, you may request a partial rollover.
This would allow you to leave a portion of your proceeds in your prior retirement plan,
and receive the remainder as a distribution. Please contact USI at 1-206-676-3320 or
1-866-468-7272 between 8:00am and 5:00pm (PST), or email us at
GET401k@usi.com

Can I do a split rollover?


If applicable under your employer’s plan document, you may request a split rollover.
This would allow you to have a portion of your proceeds rolled over, and the remainder
sent directly to you. We will need instructions sent via email, fax, or mail as to how the
funds will be split. Please contact USI at 1-206-676-3320 or 1-866-468-7272 between
8:00am and 5:00pm (PST), or email us at GET401k@usi.com

Can I rollover my Pre-Tax contributions into a ROTH IRA?


Yes. To process this request, please contact USI at 1-206-676-3320 or 1-866-468-
7272 between 8:00am and 5:00pm (PST), or email us at GET401k@usi.com. Please
note that a rollover from a retirement plan into a ROTH IRA usually triggers tax
consequences, since the taxation of ROTH IRA withdrawals are more liberal than
retirement plan withdrawals.

What if I have a loan outstanding during the time of my distribution?


If your account contains an outstanding loan balance, you have two options. The first
option is to repay the outstanding loan balance and accrued interest prior to the default
date in the plan’s loan policy by certified check/money order. The second option is to
request a loan offset (i.e.: the outstanding loan balance will be deducted form your
account balance). If no election is made, in accordance with your plan’s loan policy, a
loan offset will occur automatically. The amount of the loan offset will be considered a
taxable distribution to you.

When can I take a distribution without penalty?


At age 55 or older, upon separation of service you may take a distribution. You will
need to pay income tax, but will not be penalized. If you rollover your proceeds into an
IRA you will need to wait until 59 ½ to take your distribution without penalty.

The information has been prepared for general education purposes only and is not intended to be a comprehensive analysis of the topics
discussed herein. It should not be relied upon as the only source of information and is not intended to represent investment or tax advice or
recommendation specific to your situation. We recommend you seek guidance from the legal, tax, and financial professional(s) of your choice.
The information provided is a summary of retirement plan distribution options and the online distribution process. The Summary Plan Description
“SPD” provides greater detail and other important information concerning your participation in the Plan. Keep in mind that if there is a
discrepancy between the information provided herein and the information in the “SPD” then the “SPD” and language will govern
Online Distribution – Step by Step Instructions
The Distribution Request options may include pre-tax, after-tax and Roth rollover, if applicable for an
account. The balances remaining in the account at the time of termination must be rolled over or
taken as a distribution.

Before you start the distribution process, please make sure you read the instruction screen carefully
and any additional links provided on the page. If you have any questions, please contact USI at 1-
206-676-3320 or 1-866-468-7272 between 8:00am and 5:00pm (PST), or email us at
GET401k@usi.com

Once prepared, you can select the rollover option or distribution option. Money that is not rolled-
over must be taken as a distribution, the funds will be sent to the address on file via check.
Request Rollover

When you select the rollover option, a set of fields appears where you can enter transfer information
for the institution that will receive the rollover. In the following example, only the Rollover Pre-tax
option is selected. If you have an after-tax or Roth balance, you will need to contact USI Advisors
for this type of distribution.

It is your responsibility to confirm that your rollover account is open and that the receiving institution
will be able to deposit the check once received.

No forms can be forwarded with the rollover check when the distribution is completed online. If
additional information must accompany the check, please request the check be mailed to you by
providing your home address in the institutional address fields. The rollover check will be issued
payable to the rollover institution, FBO (For Benefit Of) your name and mailed to your home. Once
you have received the check you can take mail it to your financial institute with the appropriate
paperwork.

Select “Rollover Pre-Tax”

Enter Rollover Institution (max 30 characters)

Enter Rollover Account Number (max 15 characters)

Enter Home Address (max 30 characters)

Enter Secondary Address (max 30 characters)

Enter City (max 30 characters)

Enter State (max 2 characters)

Enter Zip Code (max 10 characters)

Select “Submit Request”

Once you submit the distribution request, the system displays a summary of the request. After
reviewing the request to verify that the information is correct, you can click ‘I Accept’. If the
information is incorrect, you can click ‘Change this Distribution Request’ and return to the
Distribution Request page and make the necessary modifications.
Request Distribution via Check

If you choose not to rollover your proceeds, you may take a cash distribution and have your vested
account balance paid to you. Please note that a mandatory 20% will be withheld for federal tax
withholding. If you would like additional withholding to be withdrawn you will have an opportunity to
enter that additional amount.

Under the heading ‘Distribution Method for Proceeds Paid to You’ your distribution can be paid
in two ways. Distribution proceeds (total amount not rolled over) will be sent to you via check.

If selecting ‘Amount paid via check’ proceeds will be sent directly to you by check within 7 – 10
business days. Please review your home address information by selecting ‘Participant Summary’
under the ‘Account Summary’ tab. The Form 1099R will be sent to this address at the time of
distribution.

Skip Rollover Pre-Tax

Select “via check” option from dropdown menu

Enter Additional Tax Withholding if applicable

Select “Submit Request”

Once you submit the distribution request, the system displays a summary of the request. After
reviewing the request to verify that the information is correct, you can click ‘I Accept’. If the
information is incorrect, you can click ‘Change this Distribution Request’ and return to the
Distribution Request page and make the necessary modifications.

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