Outline
The Transamerica 401K Withdrawal form is an essential document for individuals looking to access their retirement savings. This form serves as a formal request for distributions from a 401(k) plan and includes several critical sections that guide participants through the withdrawal process. Participants must provide personal information, including their Social Security number, date of birth, and employment details. They must also specify the reason for the withdrawal, such as retirement, disability, or termination of employment. The form outlines various payment options, including direct rollovers to other retirement accounts or cash distributions, with important tax implications for each choice. Additionally, spousal consent may be required if the participant is married and the plan allows for annuities. This ensures that both partners are informed about the distribution decisions. Completing the form accurately is crucial, as any missing information could delay processing. Lastly, participants must submit the form to their employer for approval, rather than mailing it directly to the processing center. Understanding these key aspects can help individuals navigate their 401(k) withdrawals more effectively.
Sample - Transamerica 401K Withdrawal Form
Distribution Request Form
READ THE ATTACHED IRS SPECIAL TAX NOTICE: IF YOUR PLAN ALLOWS FOR AN ANNUITY OPTION, READ THE WRITTEN EXPLANATION OF QUALIFIED JOINT AND 50% CONTINGENT SURVIVOR ANNUITY FORM OF BENEFIT BEFORE COMPLETING THIS FORM.
Please note: Do not use this form for: |
(1) Death Benefit Claim (2) Required Minimum Distribution (3) Hardship Withdrawal Request |
INSTRUCTIONS AND INFORMATION FOR COMPLETING THIS FORM
This Form Must Be Completed And Signed By You (And Your Spouse If You Are Married And Your Plan Allows For Annuities) And The Plan Administrator, Trustee Or An Authorized Signer. If any information is missing or incomplete, you may be required to complete a new form or provide additional information before the distribution can be processed.
If your distribution will be sent to an address outside of the United States, Puerto Rico, the U.S. Virgin Islands or Guam, you must also submit either an IRS Form
PARTICIPANT INSTRUCTIONS
1.Complete Sections
2.Your signature is required in Section I. (Please note: A signature guarantee is required for distributions of $150,000 or more).
3.Submit this form to your Employer for signature and processing. Do not mail this form directly to the Processing Center listed at the end of this form.
EMPLOYER INSTRUCTIONS
1.Complete Section J.
2.Your signature is required in Section J. (Please note: A signature guarantee is required for distributions of $150,000 or more).
3.Submit this form to the Processing Center.
SECTION A. Participant Information – Please print
___________________________________________________________________________ |
______________________________________ |
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Company/Employer Name |
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Contract Number |
Social Security Number |
Date of Birth |
Date of Hire |
___________________________________________________ |
_________________________________________________ |
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Last Name |
First Name |
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MI |
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_________________________________________________________________ |
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Street Address/Apt. No. |
City |
State |
Zip Code |
(__________) ____________________ |
_________________________________ |
Marital Status: Married |
Not Married |
Phone Number |
Email Address |
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MAIL DELIVERY |
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If no address is provided in Section A, the address on file will be used to process this request. All checks will be sent via First Class Mail unless the Overnight Mail box is checked below.
Send check overnight mail A fee (up to $50) will be deducted from your account. Please note: A street address must be provided.
Based on plan provisions, a distribution fee may be assessed at the time of processing. Please check with your Plan Administrator for any questions as to if a distribution fee may apply to your request.
SECTION B. Reason For Distribution Request- Must be completed OR skip this section if your employer checked off “plan termination in Section J
Check the appropriate box below: |
Disability as determined by the Plan’s fiduciary |
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Termination of employment |
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Age 59 ½ (if allowed by the Plan) |
Withdrawal of |
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Withdrawal of Rollover contributions (if allowed by the Plan) |
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Retirement |
Payment to alternate payee under QDRO (Only Applies to Divorce Proceedings) |
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_______________________ |
________________________ |
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Alternate Payee’s SSN |
Name |
2220 Distribution Request - ISC MEP Page 1 of 6 (2/16/23)
SECTION C. Form of Payment for Traditional 401(k) Account – Only choose one of the three options
¹Option 1 (Rollover) – I am requesting a Direct Rollover of my Traditional 401(k) account.
If “Age 59 ½,
Direct Rollover to (Select Only One):
AN IRA OFFERED THROUGH Transamerica (Minimum rollover amount is $20,000). If you are interested in the Rollover IRA option
through Transamerica, call (866)
AN ELIGIBLE RETIREMENT PLAN (401(a), 401(k), 403(b), and Governmental 457)
AN IRA
NEW ACCOUNT INFORMATION: |
MAILING ADDRESS: |
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IRA Account Number (Required) / Plan Name |
Name of Trustee or Custodian for the New Plan or IRA |
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Make Check Payable To: |
Address – Number & Street |
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City |
State |
Zip Code |
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______________________________________________________________________________________________________________________
¹Option 2 (Combination) – I am requesting a distribution of my entire Traditional 401(k) account to be paid partially to me and partially as a
Direct Rollover. I understand that the portion payable to me may be subject to 20% federal income tax withholding unless I select a percentage greater than 20% on IRS Form
Distribute my Traditional 401(k) account based on the following percentages:
__________% paid directly to me, and
__________% applied to the Direct Rollover Account indicated below.
The above two percentages must equal 100%
Direct Rollover to (Select Only One):
AN IRA OFFERED THROUGH Transamerica (Minimum rollover amount is $20,000). If you are interested in the Rollover IRA option
through Transamerica, call (866)
AN ELIGIBLE RETIREMENT PLAN (401(a), 401(k), 403(b), and Governmental 457)
AN IRA
NEW ACCOUNT INFORMATION: |
MAILING ADDRESS: |
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IRA Account Number (Required) / Plan Name |
Name of Trustee or Custodian for the New Plan or IRA |
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Make Check Payable To: |
Address – Number & Street |
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City |
State |
Zip Code |
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______________________________________________________________________________________________________________________
Option 3 (Cash) – I am requesting a distribution of my Traditional 401(k) account. I am not electing a Direct Rollover of any portion of
the distribution. I understand the check will be made payable to me and that the amount payable to me may be subject to 20% federal income tax withholding unless I select a percentage greater than 20% on IRS Form
If “Age 59 ½,
______________________________________________________________________________________________________________________
¹DIRECT ROLLOVER
In a Direct Rollover, an eligible rollover distribution is paid from your retirement plan directly to an IRA or your new Employer's 401(a), 401(k), 403(b) or governmental 457 Plan. An IRS Form
2220 Distribution Request - ISC MEP Page 2 of 6 (2/16/23)
SECTION D. Form of Payment for a Roth 401(k) Account – Complete only if your plan allows for Roth Contributions. Only choose one of the three options
¹Option 1 (Rollover) – I am requesting a Direct Rollover of my Roth 401(k) account.
If “Age 59 ½,
Direct Rollover to (Select Only One):
A ROTH IRA OFFERED THROUGH Transamerica (Minimum rollover amount is $20,000). If you are interested in the Rollover IRA
option through Transamerica, call (866)
A DESIGNATED ROTH ACCOUNT (401(k), 403(b)) or ROTH IRA
NEW ACCOUNT INFORMATION: |
MAILING ADDRESS: |
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Roth IRA Account Number (Required) / Plan Name |
Name of Trustee or Custodian for the New Roth 401(k) or Roth IRA |
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Make Check Payable To: |
Address – Number & Street |
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City |
State |
Zip Code |
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______________________________________________________________________________________________________________________
¹Option 2 (Combination) – I am requesting a distribution of my entire Roth 401(k) account to be paid partially to me and partially as a Direct
Rollover. I understand that the portion payable to me may be subject to 20% federal income tax withholding unless I select a percentage greater than 20% on IRS Form
Distribute my Roth 401(k) account based on the following percentages:
__________% paid directly to me, and
__________% applied to the Direct Rollover Account indicated below.
The above two percentages must equal 100%
Direct Rollover to (Select Only One):
A ROTH IRA OFFERED THROUGH Transamerica (Minimum rollover amount is $20,000). If you are interested in the Rollover IRA
option through Transamerica, call (866)
A DESIGNATED ROTH ACCOUNT (401(k), 403(b)) or ROTH IRA
NEW ACCOUNT INFORMATION: |
MAILING ADDRESS: |
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IRA Account Number (Required) / Plan Name |
Name of Trustee or Custodian for the New Plan or IRA |
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Make Check Payable To: |
Address – Number & Street |
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City |
State |
Zip Code |
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______________________________________________________________________________________________________________________
Option 3 (Cash) – I am requesting a distribution of my Roth 401(k) account. I am not electing a Direct Rollover of any portion of the
distribution. I understand the check will be made payable to me and that the amount may be subject to 20% federal income tax withholding unless I select a percentage greater than 20% on IRS Form
If “Age 59 ½,
______________________________________________________________________________________________________________________
¹DIRECT ROLLOVER
In a Direct Rollover, an eligible rollover distribution is paid from your retirement plan directly to an IRA or your new Employer's 401(a), 401(k), 403(b) or governmental 457 Plan. An IRS Form
For participants required to take a minimum distribution during the current year that was not satisfied, please note the following: Your required minimum distribution (RMD) for the current year will need to be completed and made payable to you prior to the processing of your direct rollover request.
2220 Distribution Request - ISC MEP Page 3 of 6 (2/16/23)
SECTION E. Annuity Request (Not applicable to vested account under $5,000 or if your plan does not offer annuities)
Skip this section if you made an election in Section C or D.
By selecting this option your entire account balance will be distributed in order to purchase the annuity
Annuity: If the plan offers annuities as a form of benefit payment, I elect payment as a monthly annuity with payments to commence
_______________________. Upon my death, my spouse’s payments should be__________% (from 50% to 100%) of my payments. My spouse’s date of birth is______/______/______. Such annuity will be a Joint and Contingent Survivor Annuity if I am married and a Single Life Annuity if I am not married. I also understand that if I am married, my spouse need not consent to this election if I choose a Qualified Joint and Contingent Survivor Annuity (“QJSA”).
I understand that if I request a periodic payment payable over a period of 10 years or more, withholding will be based on a filing status of single with no adjustments unless I make a different election on IRS Form
SECTION F. Outstanding Loan Payoff Instructions – Skip this section if you do not have an outstanding loan or are requesting an
If you have an outstanding loan please payoff the loan in full prior to submitting this Distribution Form. Submit a completed Distribution Form after you have submitted the loan payoff amount and the loan is paid in full.
Your outstanding loan balance will be defaulted and become taxable to you if the loan payoff is not processed prior to receiving a completed Distribution Form.
SECTION G. Income Tax Withholding
The income tax withholding requirements vary depending on whether or not the distribution requested is an eligible rollover distribution. Please see the attached Special Tax Notice for the definition of eligible rollover distribution and a detailed explanation of the federal income tax withholding rules. If you request a Direct Rollover, no federal income tax will be withheld from the amount directly rolled over.
FEDERAL INCOME TAX
Withholding is determined by the type of distribution and if you make an independent election to have a different rate apply. If you do not make a separate election, the following default withholding will apply:
Eligible Rollover Distributions: If you request a Direct Rollover, no federal income tax will be withheld from the amount directly rolled over. If you request a cash distribution, 20% withholding will apply unless you select a percentage greater than 20% on IRS Form
Periodic Payments: If you request a periodic payment payable over a period of 10 years or more, withholding will be based on a filing status of single with no adjustments unless you make a different election on IRS Form
The IRS Form
STATE INCOME TAX
The state of withholding will be presumed to be the state that has been provided in your address as previously provided on the form. Tax withholding rules vary by state. More likely than not, your home state (a) requires a minimum withholding amount when federal withholding is required; (b) requires withholding unless you can opt out; (c) allows a voluntary withholding election; or (d) does not have state income tax and does not permit withholding. Unless requested, state withholding will not be deducted for states with voluntary withholding. Some states require the completion of their State Withholding Certificate to make an independent election. Consult with your tax advisor or state revenue department to obtain the most
NO, I ELECT NOT TO HAVE STATE INCOME TAX WITHHELD
YES, I ELECT TO HAVE _____ % AS STATE INCOME TAX WITHHELD
YES, I ELECT TO HAVE $______ (WHOLE DOLLAR ONLY) AS STATE INCOME TAX WITHHELD
YES, I ELECT TO HAVE STATE INCOME TAX WITHHELD USING THE DEFAULT FILING STATUS AS PER MY STATE OF RESIDENCE WITHHOLDING CERTIFICATE (Note: ONLY CHECK THIS BOX FOR PERIODIC PAYMENTS WITHHOLDING).
NOTE: Withholding may be greater if the amount you select is less than the minimum required. Withholding will be processed for states that require withholding or do not allow you to opt out without your state's form.
2220 Distribution Request - ISC MEP Page 4 of 6 (2/16/23)
SECTION H. Spousal Consent
Check with your Employer/Plan Administrator or Summary Plan Description to determine whether your plan is subject to spousal consent requirements. If spousal consent is required, complete this section. If your plan is not subject to spousal consent requirements, skip to Section I. Please note: You must have your spouse’s signature notarized or have a plan representative witness your spouse’s signature if your vested account balance is greater than $5,000 andyour plan provides for joint and survivor annuities. However, if your vested account balance is less than $5,000 spousal consent is not required.
Spousal Consent
I, the undersigned spouse of the participant, have read the “Special Tax Notice Regarding Payments From Qualified Plans” provided to me and understand the effects of the waiver. I understand that federal law requires that the retirement benefit of my spouse must be paid under a Qualified Joint and Survivor Annuity Form as described in the attached “Special Tax Notice Regarding Payments From Qualified Plans,” unless I consent otherwise in writing to another benefit form. I hereby consent to the waiver of the annuity and consent to the form of benefit elected by my spouse.
Signature of Participant’s Spouse:_____________________________________________________________ Date: ___________________
Statement of Plan Representative or Notary Public
The spouse whose signature I have witnessed is known to me and signed this form in my presence.
Plan Representative:_____________________________________ ___________________________________ Date: ___________________
Notary Public Signature:_____________________________________________________________________ Date: ___________________
PLACE SEAL HERE (if applicable)
SECTION I. Participant Signature
Signature Guarantee – Place Medallion Stamp Below (Required if distribution is $150,000 or more.)
A request for a withdrawal of $150,000 or more requires that this completed form be stamped with a medallion signature guarantee. You can obtain a medallion signature guarantee from a financial institution such as a commercial bank, savings bank, credit union, or
medallion signature guarantee.
The original form, stamped with the medallion signature guarantee, must be presented to your Plan Administrator for approval.
Please note, for this purpose, the value of the withdrawal is based on the amount available (for full distributions and rollovers) on the date of processing and multiple withdrawal requests within a
Participant’s Distribution is $150,000 or more
Medallion Signature Guarantee – Place Medallion Stamp Below
PARTICIPANT SIGNATURE
*Participants will receive the price as of market close on the day that all required and completed forms are received by Transamerica in good order. Formsthat are sent in good order, but received after the close of market, will be processed based on the next business day’s market close. *Processing usually takes
My signature acknowledges that I have read, understand and agree to all the terms of this Distribution Request form, and affirm that all information that I have provided is true and correct. Further, I acknowledge that I have received the “Special Tax Notice Regarding Payments From Qualified Plans” and other required notices. The above information is true and correct to the best of my knowledge. I further understand that I may revoke this election at any time prior to the distribution taking place.
___________________________________________________________________ |
_______________________ |
Signature of Participant |
Date |
PARTICIPANT: RETURN COMPLETED FORM TO YOUR PLAN ADMINISTRATOR FOR PROCESSING
2220 Distribution Request - ISC MEP Page 5 of 6 (2/16/23)
SECTION J. For Completion by Plan Administrator, Trustee Or Authorized Signer Only
______________________________________________________________________________________________________________________
Plan Name
____________________ _________________________ |
____________________ |
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Contract Number |
Sub ID/Division # (if applicable) |
Participant’s SSN # |
Participant’s Termination Date (if applicable) |
The Participant is entitled to a vested benefit of ____________% of company contributions.
Please refer to your Plan Document for the vesting schedule. |
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Is payment of this benefit subject to Plan Termination? |
No Yes |
By signing below, I hereby authorize Transamerica to process the distribution described in this form. This request is in compliance with plan provisions. If spousal consent is not provided, then in accordance with the terms and provisions of the plan and under the current law, spousal consent is not required for payment of the requested benefit.
If this request is for a disability distribution, I certify that the participant meets the requirements of Section 72(m)(7).
Only submit this form after final contributions and loan repayments have been processed for termination distributions.
Once this form has been completed with all of the necessary information and required signatures, please forward to the Processing Center for processing.
This form cannot be processed without the Plan Administrator, Trustee or Authorized Signer’s signature. Be sure to keep a copy for your records.
___________________________________________________________________ |
_______________________ |
By: Signature of MEP Plan Administrator, Trustee or Authorized Signer |
Date |
(Please verify that all information in Section A is completed) |
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___________________________________________________________________ |
_______________________ |
Print Name of MEP Plan Administrator, Trustee or Authorized Signer |
Date |
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FOR PLAN ADMINISTRATOR USE ONLY – MAIL TO: |
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Processing Center, 6400 C Street SW, Cedar Rapids, IA 52499 or Fax to |
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2220 Distribution Request - ISC MEP Page 6 of 6 (2/16/23)
Explanation of Distribution Options
This information only applies to defined contribution retirement plans that are not subject to the joint and survivor annuity requirements. The information provided in this Explanation is intended to be general in nature; not all plan provisions and options are available under your plan. To confirm the specific terms of your plan, please refer to your Summary Plan Description or contact your Plan Administrator.
General
As a plan participant, you may have the right to receive benefits when you reach your normal retirement age under the plan or terminate employment, provided your plan account has monies in it available for your withdrawal. If your plan allows in‐service withdrawals for hardship or upon your attainment of age 59 1/2 or for any other reasons, you may also elect to receive benefit payments if you have satisfied the applicable plan requirements.
Please note, the plan may provide that if the cash value of your benefit is less than a specified amount (generally $5,000 or less, if any), your benefit will be paid to you in a single sum, or automatically rolled over to an IRA (if required by federal law) unless you elect otherwise.
Under the provisions of the plan, you may request that your benefit be paid under the optional form of benefit which is best suited to your particular needs and circumstances. The amount of monthly income payable will depend upon the form of payment elected, your age (and your designated beneficiary’s age) as well as your vested account balance as of your retirement date, or, if earlier, date of this election.
Summary of Forms of Benefit (Availability of the following options will depend upon plan provisions)
Single Sum Payment: The vested balance in your account will be paid in a single sum.
Installment Payment (specific limitations may apply to this option under the terms of your plan): The vested balance in your account will be paid in monthly, quarterly, semi‐annual or annual installment payments.
Partial Payment: The vested balance in your account will be paid in partial payments.
Fixed Period Certain Annuity ‐ No “Life” Guarantee: A monthly income is payable to you beginning on your benefit starting date, in equal installments over a specified period of not less than 12 nor more than 240 months. If you die during the specified period elected, the income will be continued for the remainder of the specified period to your designated beneficiary. You may elect that such payment to your beneficiary is to be made in a single sum.
Straight Life Annuity ‐ No “Years” Certain: A lifetime monthly income is payable to you, beginning on your benefit starting date and continuing until the last payment due before your death. If you die after your benefit starting date, there will be no death benefit payable. If you are married, you may elect this form of payment only with your spouse’s consent.
Life Annuity with Period Certain: A lifetime monthly income is payable to you, beginning on your benefit starting date and continuing until the last payment due before your death. If you die during the period certain which begins on your benefit starting date, the monthly income will be continued to your designated beneficiary for the remainder of the period certain. The beneficiary may elect that such payment be made in a lump sum.
Joint and Survivor Annuity: A lifetime monthly income is payable to you, beginning on your benefit starting date and continuing until the last payment due before your death. Upon your death, your joint annuitant will receive a monthly income for life equal to, depending on the provisions of your plan, at least one‐half (and not more than 100%) of the amount of monthly income you were receiving. If you are married, your joint annuitant must be your spouse unless your spouse consents to another annuitant on a form provided by the Plan Administrator.
Election of Annuity Benefit
If you are married (and your plan provides annuities as a form of benefit) and you wish to elect an annuity form of benefit, other than a Joint and Survivor Annuity with your spouse as your joint annuitant, your spouse must consent to your election, in writing, witnessed by your Plan Administrator or a Notary Public, during the 180 day period before your benefit starting date. If you are married and wish to designate a person other than your spouse as your joint annuitant, you must obtain your spouse’s written consent to your beneficiary designation. (If established to the satisfaction of your Plan Administrator that your spouse cannot be located, spousal consent is not required.) Your spouse’s consent must be made on a special form available from your Plan Administrator.
September 2020 |
Page 6 of 17 |
2220 Distribution Request - ISC MEP |
Comparison of Forms of Benefit
These examples compare benefits under forms of payment that may be available under the plan. These examples are based on specific assumptions and certain interest rates and mortality rates. The amounts shown are estimates, provided to illustrate the differences among the various options and are not intended to represent the actual amount payable to you. Upon your request, a more precise calculation will be provided. Your request should be sent to the address below if in writing. If you wish to call in your request, see the number provided below for you to call.
Assume a participant retiring at age 65 has a beneficiary of the same age and a $200,000 account balance.
Age 65 Commencement
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Benefit to Spouse/Beneficiary After |
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Form of Benefit |
Benefit to Participant |
Participant’s Death |
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Qualified Joint and Survivor Annuity |
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50% |
$ 914.31 per month |
$ 457.16 per month |
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66.7% |
$ 890.56 per month |
$ 593.71 per month |
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75% |
$ 879.15 per month |
$ 659.36 per month |
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100% |
$ 846.58 per month |
$ 846.58 per month |
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Straight Life Annuity |
$ 993.76 per month |
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Life Annuity with 5 Years Certain |
$ 988.91 per month |
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Life Annuity with 10 Years Certain |
$ 974.01 per month |
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Period Certain 5 |
$ 3,392.05 per month |
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Period Certain 10 Years |
$ 1,814.58 per month |
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Any annuity elected will be provided by purchasing an annuity contract from an insurance company with your vested account balance under the plan. Dollar amounts shown do not reflect any required tax withholding, ongoing account expenses, or possible fees charged by the annuity provider.
Election Rights
You have at least 30 days to consider which form of benefit payment you want to elect. If, after receiving this Explanation, you affirmatively elect a distribution, your distribution may be made less than 30 days from the date this Explanation was given to you. If you elect an annuity form of payment:
•Your distribution election is revocable until the later of (a) your benefit starting date, or (b) prior to the expiration of the 7‐day period that begins the date after you receive this Explanation;
•Your benefit starting date is a date after the date you received this Explanation;
•Distribution in accordance with your benefit election is paid more than 7 days after the date this Explanation was provided.
Consequences of Your Taking the Distribution Instead of Deferring Receipt of the Distribution
If you are eligible to receive a distribution from the plan, but also have the right to defer receipt of such distribution because, e.g., the value of your nonforfeitable account balance exceeds $5,000 (or such lower automatic cash‐out limit set by the plan), your decision not to defer receipt of your distribution includes the following consequences if you do not directly (or indirectly within 60 days of receipt of the distribution) roll over your distribution to an IRA or another eligible retirement plan: (1) you will be taxed on the taxable amount of the distribution in the year the distribution is made and will no longer be able to defer the taxation of the distribution, (2) an IRS early distribution 10% penalty tax may apply to the taxable portion of your distribution if you receive the distribution either before attaining age 59 ½ or after separating from service before the year in which you attain age 55, and (3) you will lose the opportunity to defer the taxation of future earnings on your distribution.
Please note that some currently available investment options may not be generally available on similar terms outside the Plan. In addition, fees and expenses (including administrative or investment‐related fees) outside the Plan may be different from fees and expenses that apply to the Plan’s accounts. Please contact your financial advisor for additional information.
Your plan may include other provisions that might affect your decision whether to defer receipt of a distribution. You should review the plan’s summary plan description before deciding to elect a distribution, and discuss this issue with your tax advisor. A copy of the plan’s summary plan description is available from the Plan Administrator.
Right to Request Participant‐Specific Information
You have the right to request specific information with respect to each form of benefit available to you under the plan, including a description of the financial effect of electing each form of benefit available to you under the plan. Written requests should be sent to your Plan Administrator.
September 2020 |
Page 7 of 17 |
2220 Distribution Request - ISC MEP |
Special Tax Notice Regarding Plan Payments
(Including Payments From Your Designated Roth Account, If Applicable)
YOUR ROLLOVER OPTIONS
You are receiving this notice because all or a portion of a payment you are receiving from your employer’s retirement plan is eligible to be rolled over to a Traditional IRA, a Roth IRA or an employer plan. This notice is intended to help you decide whether to do such a rollover.
Section I of this notice describes the rollover rules that apply to payments from the Plan that are not from a designated Roth account (a type of account in some employer plans that is subject to special tax rules).
Section II applies if you also receive a payment from a designated Roth account in the Plan, in which case the plan administrator or the payor will tell you the amount that is being paid from eachaccount.
Rules that apply to most payments from a plan are described in the “General Information About Rollovers” section. Special rules that only apply in certain circumstances are described in the “Special Rules and Options” section.
Generally, neither a direct rollover nor a payment can be made from the Plan until at least 30 days after your receipt of this notice. Thus, after receiving this notice, you have at least 30 days to consider whether or not to have your withdrawal directly rolled over. If you do not wish to wait until this
Section I: GENERAL INFORMATION ABOUT ROLLOVERS FROM YOUR RETIREMENT PLAN (Not Including Any Designated Roth Account)
How can a rollover affect my taxes?
You will generally be taxed on a payment from the Plan if you do not roll it over. However, rollovers to a designated Roth account within the Plan or to a Roth IRA that are not from a designated Roth account are subject to taxation, as discussed below. If you are under age 59½ and do not do a rollover, you will also have to pay a 10% additional income tax on early distributions (generally, distributions made before age 59½), unless an exception applies. However, if you do a rollover, you will not have to pay tax until you receive payments later and the 10% additional income tax will not apply if those payments are made after you are age 59 1/2 (or if an exception to the 10% additional income tax applies).
What types of retirement accounts and plans may accept my rollover?
You may roll over the payment to either an IRA (an individual retirement account or individual retirement annuity) or an employer plan (a tax- qualified plan, section 403(b) plan, or governmental section 457(b) plan) that will accept the rollover. The rules of the IRA or employer plan that holds the rollover will determine your investment options, fees, and rights to payment from the IRA or employer plan (for example, IRAs are not subject to spousal consent rules and IRAs may not provide loans). Further, the amount rolled over will become subject to the tax rules that apply to the IRA or employer plan.
You may also roll over the payment to a designated Roth account within the Plan.
How do I do a rollover?
There are two ways to do a rollover. You can generally do either a direct rollover or a
If you do a direct rollover, the Plan will make the payment directly to your IRA or an employer plan. You should contact the IRA sponsor or the administrator of the employer plan for information on how to do a direct rollover.
If you do not do a direct rollover, you may still do a rollover by making a deposit into an IRA or eligible employer plan that will accept it. Generally, you will have 60 days after you receive the payment to make the deposit. If you do not do a direct rollover, the Plan is required to withhold 20% of the payment for federal income taxes (up to the amount of cash and property received other than employer stock). This means that, in order to roll over the entire payment in a
How much may I roll over?
If you wish to do a rollover, you may roll over all or part of the amount eligible for rollover. Any payment from the Plan is eligible for rollover, except:
•Certain payments spread over a period of at least 10 years or over your life or life expectancy (or the joint lives or joint life expectancies of you and your beneficiary);
•Required minimum distributions after age 70 ½ (if you were born before July 1, 1949), after age 72 (if you were born after June 30, 1949) or after death;
•Hardship distributions;
•Payments of employee stock ownership plan (ESOP) dividends;
•Corrective distributions of contributions that exceed tax law limitations;
•Loans treated as deemed distributions (for example, loans in default due to missed payments before your employment ends)
•Cost of life insurance paid by the Plan;
•Payments of certain automatic enrollment contributions that you request to withdraw within 90 days of your first contribution;
•Amounts treated as distributed because of a prohibited allocation of S corporation stock under an ESOP (also, there generally will be adverse tax consequences if you roll over a distribution of S corporation stock to an IRA): and
•Distributions of certain premiums for health and accident insurance
The plan administrator or the payor can tell you what portion of a payment is eligible for rollover.
If I don’t do a rollover, will I have to pay the 10% additional income tax on early distributions?
If you are under age 59 1/2, you will have to pay the 10% additional income tax on early distributions for any payment from the Plan (including amounts withheld for income tax) that you do not roll over, unless one of the exceptions listed below applies. This tax applies to the part of the distribution that you must include in income and is in addition to the regular income tax on the payment not rolled over.
The 10% additional income tax does not apply to the following payments from the Plan:
•Payments made after you separate from service if you will be at least age 55 in the year of the separation;
•Payments that start after you separate from service if paid at least annually in equal or close to equal amounts over your life or life expectancy (or the joint lives or joint life expectancies of you and your beneficiary);
•Payments from a governmental plan made after you separate from service if you are a qualified public safety employee and you will be at least age 50 in the year of the separation;
•Payments made due to disability;
•Payments after your death;
•Payments of ESOP dividends;
•Corrective distributions of contributions that exceed tax law limitations;
•Cost of life insurance paid by the Plan;
•Payments made directly to the government to satisfy a federal tax levy;
•Payments made under a qualified domestic relations order (QDRO);
•Payments of up to $5,000 made to you from a defined contribution plan if the payment is a qualified birth or adoption distribution;
•Payments up to the amount of your deductible medical expenses (without regard to whether you itemize deductions for the taxable year);
•Certain payments made while you are on active duty if you were a member of a reserve component called to duty after September 11, 2001 for more than 179 days;
•Payments of certain automatic enrollment contributions that you request to withdraw within 90 days of your first contribution;
•Payments excepted from the additional income tax by federal legislation relating to certain emergencies and disasters; and
•Phased retirement payments made to federal employees.
If I do a rollover to an IRA, will the 10% additional income tax apply to early distributions from the IRA?
If you receive a payment from an IRA when you are under age 59½, you will have to pay the 10% additional income tax on early distributions on the part of the distribution that you must include in income, unless an exception applies. In general, the exceptions to the 10% additional income tax for early distributions from an IRA are the same as the exceptions listed above for early distributions from a plan. However, there are a few differences for payments from an IRA, including:
•The exception for payments made after you separate from service if you will be at least age 55 in the year of the separation (or age 50 for qualified public safety employees) does not apply.
•The exception for qualified domestic relations orders (QDROs) does not apply (although a special rule applies under which, as part of a divorce or separation agreement, a
•The exception for payments made at least annually in equal or close to equal amounts over a specified period applies without regard to whether you have had a separation from service.
Additional exceptions apply for payments from an IRA, including:
•Payments for qualified higher education expenses,
•Payments up to $10,000 used in a qualified
•Payments for health insurance premiums after you have received unemployment compensation for 12 consecutive weeks (or would have been eligible to receive unemployment compensation but for
Will I owe State income taxes?
This notice does not address any State or local income tax rules (including withholding rules).
SPECIAL RULES AND OPTIONS For Payments From Your Retirement Account (Not Including Your Designated Roth Account)
If your payment includes
You may roll over to an IRA a payment that includes
Form Information
| Fact Name | Description |
|---|---|
| Eligibility for Withdrawal | Participants can request a distribution under specific conditions such as termination of employment, reaching age 59½, or disability. However, the form cannot be used for death benefit claims or hardship withdrawals. |
| Spousal Consent Requirement | If you are married and your plan allows for annuities, your spouse must consent to the withdrawal. This is especially important for accounts with a vested balance over $5,000. |
| Submission Process | After completing the form, participants must submit it to their employer for signature and processing. Direct submission to the processing center is not allowed. |
| State-Specific Regulations | Each state may have different tax withholding rules for distributions. It is essential to consult with a tax advisor or the plan administrator to understand the specific state laws that apply to your situation. |
Detailed Guide for Filling Out Transamerica 401K Withdrawal
Completing the Transamerica 401K Withdrawal form requires careful attention to detail. This process involves filling out several sections accurately to ensure your request is processed without delays. Follow the steps outlined below to complete the form correctly.
- Begin with Section A, providing your personal information. Include your company name, contract number, Social Security number, last name, date of birth, date of hire, email address, phone number, street address, city, state, zip code, and marital status.
- Move to Section B to indicate the reason for your distribution request. Check the appropriate box that applies to your situation.
- In Section C, select your preferred form of payment for your Traditional 401(k) account. Choose one of the three options: rollover, combination, or cash. Fill in any required details for your choice.
- If applicable, complete Section D for your Roth 401(k) account, following the same process as in Section C.
- Skip Section E if not applicable. If you are requesting an annuity, provide the necessary details.
- In Section F, indicate any outstanding loan payoff instructions if relevant to your situation.
- Proceed to Section G to select your income tax withholding preferences. Review the options and fill in the required percentages.
- If your plan requires spousal consent, complete Section H. Ensure your spouse signs and that their signature is notarized or witnessed by a plan representative.
- In Section I, sign and date the form to confirm that all information is accurate and that you understand the terms of the distribution.
- Submit the completed form to your employer for their signature and processing. Do not send the form directly to the Processing Center.
Once the form is filled out and submitted, your employer will review and sign it before sending it to the Processing Center. Be sure to keep a copy for your records.
Obtain Answers on Transamerica 401K Withdrawal
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What is the purpose of the Transamerica 401K Withdrawal Form?
The Transamerica 401K Withdrawal Form is designed for participants who wish to request a distribution from their 401(k) plan. This form allows individuals to specify the reason for the withdrawal, the amount, and the method of payment. It is essential for ensuring that the distribution is processed correctly and in compliance with IRS regulations.
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Who needs to sign the form?
Participants must complete and sign the form, and if married and the plan allows for annuities, the spouse must also provide their signature. Additionally, a Plan Administrator, Trustee, or an authorized signer must sign the form to validate the request. This multi-signature requirement helps to ensure that all parties are aware of and agree to the distribution.
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What should I do if I am missing information on the form?
If any section of the form is incomplete or missing information, it may delay the processing of your request. You might be required to fill out a new form or provide the necessary details before your distribution can be processed. It is advisable to double-check all sections for completeness before submission.
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What are the payment options available for my withdrawal?
Participants can choose from several payment options, including:
- Direct Rollover: Transfer the funds directly to an IRA or another eligible retirement plan.
- Combination: A portion of the funds can be paid directly to the participant, while the remainder is rolled over.
- Cash Distribution: Receive the funds directly, which may be subject to federal income tax withholding.
Each option has specific tax implications, so it is important to understand the consequences of your choice.
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Are there any tax implications associated with the withdrawal?
Yes, there are tax implications depending on the type of distribution. If you opt for a cash distribution, a mandatory 20% federal income tax withholding may apply. For direct rollovers, no federal income tax is withheld. Additionally, state tax laws may also affect your distribution, so consulting a tax advisor is recommended to understand your specific situation.
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What if I have an outstanding loan against my 401(k) account?
If you have an outstanding loan and request a distribution due to termination of employment, disability, or retirement, the loan may be considered paid in full if you have submitted payment for the outstanding amount. However, if the payment has not been processed, the loan balance may default and become taxable. It is crucial to address any outstanding loans before submitting the withdrawal request.
Common mistakes
Completing the Transamerica 401K Withdrawal form can be a straightforward process, but many individuals make common mistakes that can delay their request. One of the most frequent errors is failing to complete all required sections. Sections A through H must be filled out accurately. If any information is missing, you may have to start over with a new form. This can lead to unnecessary delays in processing your withdrawal.
Another mistake often seen is skipping the spousal consent section when required. If you are married and your plan allows for annuities, your spouse's signature is necessary. Without this consent, the processing of your request may be halted. This is a crucial step that should not be overlooked.
People frequently overlook the importance of providing a complete mailing address. If Section A lacks an address, the request will be processed using the address on file, which may not be current. This can lead to delays in receiving your distribution. Always ensure that your address is up to date and clearly written on the form.
Additionally, many individuals neglect to select a specific form of payment. In Section C and D, you must choose one of the options available for both Traditional and Roth 401(k) accounts. Failing to make a selection can result in confusion and further delay as the processing center may not know how to proceed.
Another common error is misunderstanding the tax implications of your withdrawal. Participants often do not read the attached IRS Special Tax Notice, which outlines the federal income tax withholding rules. Ignoring this information can lead to unexpected tax liabilities. It’s vital to understand how your withdrawal will be taxed to avoid surprises later.
Some individuals mistakenly assume that their withdrawal will be processed immediately. However, the form must be signed by both the participant and the plan administrator. Without the necessary signatures, your request cannot move forward. Always double-check that all required signatures are in place before submission.
Lastly, not keeping a copy of the completed form for personal records can be a significant oversight. If there are any issues or questions about your request later, having a copy can help clarify what was submitted. It’s always wise to maintain documentation of important financial transactions.
Documents used along the form
When completing a Transamerica 401K Withdrawal form, several other documents may be required to ensure a smooth process. Here are five common forms that often accompany the withdrawal request.
- Spousal Consent Form: This document is necessary if you are married and your plan requires spousal consent for distributions. It verifies that your spouse agrees to the withdrawal and understands its implications.
- Special Tax Notice: This notice provides important information about the tax consequences of your withdrawal. It outlines any potential tax liabilities and informs you about withholding requirements.
- Loan Payoff Request Form: If you have an outstanding loan against your 401(k), this form is needed to address how the loan will be handled during the withdrawal process. It details whether the loan will be paid off or defaulted.
- Distribution Election Form: In some cases, a separate form may be required to specify how you want your distribution paid out (e.g., lump sum, rollover, or annuity). This ensures clarity on your payment preferences.
- Employer Authorization Form: This form requires your employer's signature to confirm that they approve the distribution request. It serves as an official acknowledgment of your withdrawal.
Having these documents ready can help streamline the withdrawal process and minimize delays. Always check with your plan administrator for specific requirements related to your plan.
Similar forms
The Transamerica 401K Withdrawal form shares similarities with several other financial documents. Each of these documents serves a specific purpose in managing retirement funds, and understanding their similarities can help clarify the withdrawal process. Below is a list of documents that are comparable to the Transamerica 401K Withdrawal form:
- IRA Distribution Request Form: Like the 401K Withdrawal form, this document is used to request a distribution from an Individual Retirement Account (IRA). Both forms require personal information, the reason for withdrawal, and signatures from the account holder and sometimes a spouse.
- Retirement Plan Distribution Form: This form is utilized for distributions from various retirement plans, including 403(b) and governmental 457 plans. It similarly outlines participant information, distribution options, and tax implications.
- Hardship Withdrawal Request Form: This document allows participants to request a withdrawal due to immediate and pressing financial needs. It also requires detailed information about the reason for the withdrawal and may necessitate supporting documentation.
- Qualified Domestic Relations Order (QDRO) Form: Used in divorce proceedings, a QDRO allows for the division of retirement assets. It requires information about the participant and the alternate payee, similar to the details needed on the 401K Withdrawal form.
- Spousal Consent Form: This document is often required when a participant is married and wishes to withdraw funds. It ensures that the spouse is aware of and consents to the withdrawal, much like the spousal consent section in the 401K Withdrawal form.
- Direct Rollover Request Form: This form is specifically for initiating a direct rollover of retirement funds to another qualified plan or IRA. It includes similar sections for participant information and rollover options.
- Loan Repayment Request Form: For those who have taken loans against their retirement accounts, this form is used to request repayment or to clarify outstanding loan balances. It shares a focus on the participant's financial obligations, akin to the loan payoff instructions in the 401K Withdrawal form.
- Tax Withholding Election Form: This form allows participants to specify how much tax should be withheld from their distributions. It parallels the tax withholding information included in the 401K Withdrawal form, emphasizing the importance of understanding tax implications.
Dos and Don'ts
When filling out the Transamerica 401K Withdrawal form, it is essential to follow certain guidelines to ensure a smooth processing experience. Below are four things you should and shouldn't do:
- Do complete all required sections of the form accurately, including Sections A-H as applicable.
- Do provide your signature in Section I to validate your request.
- Don't submit the form directly to the Processing Center; instead, return it to your Employer for signature and processing.
- Don't leave any sections blank, as missing information may require you to fill out a new form.
Misconceptions
Understanding the Transamerica 401K Withdrawal form can be challenging. Here are some common misconceptions that often arise:
- All distributions are the same. Many believe that all withdrawal requests are treated equally. However, different types of distributions, such as hardship withdrawals and rollovers, have distinct rules and tax implications.
- Spousal consent is always required. While spousal consent is necessary for certain distributions, it is not required if the vested account balance is less than $5,000 or if the plan does not provide for joint and survivor annuities.
- You can mail the form directly to Transamerica. Some think they can send the completed form straight to Transamerica. In reality, it must be submitted to your employer for processing.
- Tax withholding is optional for all distributions. A common misunderstanding is that tax withholding can be avoided. In fact, federal income tax withholding is mandatory for certain distributions unless a direct rollover is chosen.
- Partial distributions are always allowed. Not all plans permit partial withdrawals. It’s essential to check with your plan administrator to understand your specific options.
- Roth and traditional 401(k) distributions are the same. Many people do not realize that Roth 401(k) distributions have different tax treatment compared to traditional 401(k) distributions, especially regarding tax-free withdrawals.
- All forms of payment are available for every account. Some assume they can choose any payment method. However, the options available depend on the type of account and the specific plan provisions.
- Outstanding loans don't affect withdrawal requests. Individuals often overlook that if there is an outstanding loan, it may impact the distribution process, especially if the reason for withdrawal is termination of employment.
- You can change your mind after submitting the form. While you can revoke your election before the distribution occurs, once the request is processed, it cannot be reversed.
Being informed about these misconceptions can help you navigate the Transamerica 401K Withdrawal form more effectively. Always consult your plan administrator for specific guidance tailored to your situation.
Key takeaways
Filling out and using the Transamerica 401K Withdrawal form involves several important steps and considerations. Here are key takeaways to keep in mind:
- Eligibility Check: Ensure that your reason for withdrawal aligns with the options provided. This form cannot be used for death benefit claims, required minimum distributions, or hardship withdrawals.
- Complete Sections A-H: Fill out all applicable sections thoroughly. If you do not have a Roth 401(k) account, skip Section D. Married participants should complete Section H for spousal consent if required.
- Signature Requirement: Your signature is mandatory in Section I. If married, your spouse must also sign in Section H, if applicable.
- Employer Processing: Submit the completed form to your employer for their signature and processing. Do not send it directly to the processing center.
- Mail Delivery Options: Specify your mailing preferences in Section A. If no address is provided, the address on file will be used. Overnight mail incurs additional charges.
- Distribution Reasons: Clearly indicate the reason for your distribution request in Section B. This helps ensure that your request is processed correctly.
- Payment Options: Choose your preferred payment method in Sections C and D. Options include direct rollovers, combinations of cash and rollovers, or cash only.
- Tax Implications: Be aware of the tax consequences of your distribution. Certain distributions may be subject to federal and state income tax withholding.
- Record Keeping: Keep a copy of the completed form for your records. This is crucial for tracking your withdrawal and for future reference.
By following these guidelines, you can navigate the Transamerica 401K Withdrawal form process more effectively and ensure a smoother experience.