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The Transamerica 401K Withdrawal form is a crucial document for individuals seeking to access their retirement savings. This form facilitates various types of distributions, including direct rollovers, cash payments, and annuity options, depending on the specifics of the retirement plan. It requires detailed participant information, including social security numbers, employment details, and marital status, to ensure accurate processing. Participants must complete multiple sections, including the reason for withdrawal and the desired form of payment. Notably, spousal consent may be necessary if the participant is married and the plan allows for annuities. Missing information can lead to delays, necessitating the submission of a new form. Additionally, the form outlines tax implications, emphasizing the importance of understanding federal and state income tax withholding rules. Overall, completing the Transamerica 401K Withdrawal form accurately is essential for a smooth distribution process.
Transamerica 401K Withdrawal Example
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.
___________________________________________________________________ |
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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
File Breakdown
| Fact Name | Details |
|---|---|
| Form Purpose | This form is used to request a distribution from your Transamerica 401(k) account. |
| Eligibility | Participants must complete the form and obtain necessary signatures from their spouse (if married) and the plan administrator. |
| Sections to Complete | Sections A-H must be filled out, skipping Section D if you do not have a Roth 401(k) account. |
| Mailing Instructions | Do not mail the form directly to the Processing Center; submit it to your employer for processing. |
| Distribution Options | Participants can choose from options like direct rollover, combination payments, or cash distributions. |
| Tax Implications | Federal income tax withholding applies unless a direct rollover is requested; 20% withholding may apply to cash distributions. |
| Spousal Consent | Spousal consent is required if your vested account balance exceeds $5,000 and your plan provides for joint and survivor annuities. |
| Distribution Fees | Check with your Plan Administrator for potential distribution fees that may apply. |
| State-Specific Laws | State income tax withholding rules vary; consult a tax advisor for specifics based on your state. |
Guide to Using Transamerica 401K Withdrawal
After completing the Transamerica 401K Withdrawal form, submit it to your employer for signature and processing. Ensure all sections are filled out accurately to avoid delays.
- Complete Sections A-H of the form. If you do not have a Roth 401(k) account, skip Section D. If you are married and your plan allows for annuities, fill out Section H for Spousal Consent.
- Sign your name in Section I.
- Submit the form to your employer for their signature and processing. Do not send it directly to the Processing Center.
For your employer:
- Complete Section J of the form.
- Provide your signature in Section J.
- Send the completed form to the Processing Center.
Get Answers on Transamerica 401K Withdrawal
What is the purpose of the Transamerica 401K Withdrawal form?
The Transamerica 401K Withdrawal form is used by participants to request a distribution from their 401(k) account. This form must be completed accurately to ensure the distribution is processed correctly.
Who needs to sign the Transamerica 401K Withdrawal form?
The form must be signed by the participant and, if applicable, their spouse. Additionally, the Plan Administrator, Trustee, or an authorized signer must also sign the form for processing to occur.
What sections of the form must be completed?
Participants should complete Sections A through H. If the participant does not have a Roth 401(k) account, Section D can be skipped. If married and the plan allows for annuities, Section H must be completed for spousal consent.
What happens if information is missing from the form?
If any information is incomplete, the participant may need to fill out a new form or provide additional information before the distribution can be processed. It is crucial to ensure all required sections are accurately filled out.
How are distributions delivered?
Distributions are typically sent via First Class Mail unless the participant requests overnight delivery, which incurs an additional charge. The address provided in Section A will be used unless specified otherwise.
What are the options for receiving a distribution?
Participants have three options for receiving distributions from a Traditional 401(k) account:
- Option 1: Direct Rollover to an IRA or eligible retirement plan.
- Option 2: Combination of cash payment and Direct Rollover.
- Option 3: Cash payment directly to the participant.
What are the tax implications of a withdrawal?
Tax implications vary based on the type of distribution requested. A Direct Rollover incurs no federal income tax withholding. However, cash distributions may be subject to a mandatory 20% federal income tax withholding if the taxable amount exceeds $200.
What is spousal consent, and when is it required?
Spousal consent is required if the participant is married and their vested account balance exceeds $5,000, provided the plan offers joint and survivor annuities. The spouse must sign the form, and their signature may need to be notarized or witnessed by a plan representative.
What should participants do after completing the form?
Once the form is completed and signed, participants should submit it to their employer for processing. It should not be mailed directly to the Processing Center. Keeping a copy of the completed form for personal records is advisable.
Common mistakes
Filling out the Transamerica 401K Withdrawal form can be straightforward, but many people make common mistakes that can delay their requests. One frequent error is skipping sections that don’t seem relevant. For example, if you do not have a Roth 401(k) account, it’s easy to overlook Section D. However, it’s important to follow the instructions closely and ensure every applicable section is completed.
Another mistake is neglecting to provide a signature where required. Your signature is mandatory in Section I, and if you are married and your plan allows for annuities, your spouse must also sign Section H. Missing signatures can lead to processing delays, so double-check that all necessary signatures are included before submitting the form.
People often forget to include their complete contact information in Section A. This includes not only your name and Social Security number but also your mailing address and phone number. If this information is incomplete, the processing center may not be able to reach you for clarification, which can slow down your request.
Another common oversight involves the reason for the distribution in Section B. Some individuals leave this section blank or fail to check the appropriate box. It’s essential to indicate the reason for your withdrawal clearly. This helps ensure that your request aligns with the plan’s provisions and can be processed smoothly.
Additionally, many people do not consider the tax implications of their withdrawal. In Section G, it's crucial to understand how income tax withholding works. If you request a distribution that is subject to federal income tax, you may face a 20% withholding if the amount exceeds $200. Not accounting for this can lead to unexpected tax liabilities later on.
Finally, failing to submit the form to the correct party can cause significant delays. Remember, do not mail the form directly to the Processing Center. Instead, it must be submitted to your employer for signature and processing. This step is vital to ensure that your request is handled properly and in a timely manner.
Documents used along the form
When considering a withdrawal from a Transamerica 401(k) plan, several additional forms and documents may be necessary to facilitate the process. Each of these documents serves a specific purpose and helps ensure that the withdrawal is handled correctly and in accordance with regulations.
- IRS Special Tax Notice: This document provides essential information regarding the tax implications of withdrawing funds from a 401(k) account. It outlines the potential tax liabilities and informs participants about the importance of understanding their options, including rollover opportunities to avoid penalties.
- Spousal Consent Form: If the participant is married and the plan requires spousal consent for distributions, this form must be completed. It ensures that the spouse is aware of the withdrawal and agrees to it, protecting both the participant and the plan from potential disputes in the future.
- Plan Administrator Signature Page: This page must be completed by the plan administrator, trustee, or authorized signer. It verifies that all necessary information has been provided and that the distribution request complies with the plan's provisions. Without this signature, the withdrawal cannot be processed.
- Loan Payoff Instructions: If the participant has an outstanding loan against their 401(k) account, this document outlines the steps needed to pay off the loan before processing the withdrawal. It clarifies the consequences of not paying off the loan, which could lead to tax liabilities.
Understanding these additional forms is crucial for anyone looking to withdraw funds from their Transamerica 401(k). Proper completion and submission of these documents can help ensure a smoother withdrawal process and minimize potential tax consequences.
Similar forms
The Transamerica 401K Withdrawal form shares similarities with several other financial documents. Each serves a specific purpose related to retirement and distribution of funds. Below are four documents that are similar to the Transamerica 401K Withdrawal form:
- IRA Distribution Request Form: This form is used to request distributions from an Individual Retirement Account (IRA). Like the 401K Withdrawal form, it requires participant information, reason for withdrawal, and may involve spousal consent if applicable.
- Qualified Domestic Relations Order (QDRO): A QDRO is a legal order that divides retirement benefits during divorce proceedings. Similar to the 401K form, it requires detailed information about the participant and the alternate payee, ensuring proper processing of benefits.
- Rollover IRA Application: This document is used when transferring funds from one retirement account to another, such as from a 401(k) to an IRA. It shares similarities with the 401K Withdrawal form in terms of required signatures and account information for processing the rollover.
- Retirement Plan Distribution Election Form: This form allows participants to choose how they want to receive their retirement benefits. Like the 401K Withdrawal form, it includes options for cash, rollover, or annuity, and requires signatures from the participant and possibly a spouse.
Dos and Don'ts
When filling out the Transamerica 401K Withdrawal form, attention to detail is crucial. Here are five essential do's and don'ts to keep in mind:
- Do complete all required sections accurately. Missing information can delay your request.
- Don't mail the form directly to the Processing Center. Submit it to your employer for signature and processing.
- Do ensure your signature is included in Section I. This is a mandatory requirement.
- Don't skip the spousal consent section if your plan requires it. This could result in your request being denied.
- Do check for any distribution fees with your Plan Administrator before submitting your form.
Following these guidelines can help ensure a smoother withdrawal process. Take the time to review your form carefully before submission.
Misconceptions
- Misconception 1: The form can be used for any type of withdrawal.
- Misconception 2: Only the participant needs to sign the form.
- Misconception 3: You can submit the form directly to the processing center.
- Misconception 4: There are no tax implications for any withdrawal made.
- Misconception 5: All information on the form is optional.
This is not true. The Transamerica 401K Withdrawal form is specifically for distribution requests. It cannot be used for death benefit claims, required minimum distributions, or hardship withdrawal requests.
In fact, both the participant and their spouse must sign the form if the participant is married and the plan allows for annuities. Additionally, the form must also be signed by the plan administrator or an authorized signer.
This is incorrect. The completed form must be submitted to your employer for signature and processing. It should not be mailed directly to the processing center.
This is misleading. Withdrawals may be subject to federal income tax withholding, especially if the distribution is not rolled over into another retirement account. Understanding the tax implications is crucial before making a withdrawal.
This is a common misunderstanding. All sections of the form must be completed accurately. Missing or incomplete information can lead to delays or the need to fill out a new form.
Key takeaways
When completing the Transamerica 401K Withdrawal form, several important points should be kept in mind to ensure a smooth process. Below are key takeaways:
- Read the IRS Special Tax Notice attached to the form. This notice contains critical information regarding tax implications related to your withdrawal.
- Eligibility is crucial. Do not use this form for death benefit claims, required minimum distributions, or hardship withdrawal requests.
- Complete Sections A-H of the form. If you do not have a Roth 401(k) account, skip Section D.
- Your signature is mandatory in Section I. If you are married and your plan allows for annuities, your spouse must also sign in Section H.
- Submit the form to your Employer for signature and processing. Avoid mailing it directly to the Processing Center.
- Be aware of the distribution fees that may apply. Check with your Plan Administrator regarding any potential fees before submitting your request.
- Choose your form of payment carefully. You can opt for a direct rollover, a combination of payments, or cash distribution, each with specific tax implications.
- If you have an outstanding loan, it must be addressed in the request. Failure to do so may result in tax consequences.
- Understand the income tax withholding rules that apply to your distribution. The amount withheld may vary based on the type of distribution you select.