As a YWCA Retirement Fund participant, you are fully vested. That means you own 100% of your account and, unless you choose to leave your money with us until age 73*, you are eligible to receive your benefits upon retirement or leaving your YWCA. Your benefits may be paid as a:
* Lump sum withdrawal
* Rollover to an IRA or another employer’s plan
* Lifetime monthly payment (annuity)
* A combination of the above
While the Fund can’t offer you financial advice, according to ERISA rules, we can help you understand your distribution options. We’ll send you a benefits option package when your association tells us about your employment status change and will process your chosen distribution within 45 - 60 days.
In the meantime, here’s what you need to know to make the right decisions for yourself and those you care about down the road.
Refunds & Rollovers
Before you opt for a lump-sum withdrawal of your account, there are some notes and exceptions to consider.
What are your taxes going to be? Direct withdrawals are subject to a mandatory 20% income tax withholding, but that may not be all. You may incur more if you live in a state that taxes pension distributions, or a 10% penalty tax if you are under 55.
Did you make Optional Employee After-Tax Contributions? If so, you may choose to receive only the optional portion of your account, plus interest, and leave the rest with the Fund until age 73. But if you choose to withdraw 50% or 100% of your account, you must receive the optional sum at the same time.
What’s your account balance? If you have $1,000 or less in your account you must receive a refund or a rollover, and you cannot defer until age 73. If your account balance is between $1,000 and $5,000, you must also receive your benefits as a lump sum or a rollover but you can defer until age 73.
Annuities
If your account balance is more than $5,000, you may choose to receive a monthly payment for life. The Fund offers six options:
Straight Life
You receive the maximum monthly payment for life and leave no payment for a beneficiary.
Joint & Survivor 100%
You receive a set monthly payment for life. After you die, your beneficiary receives that same monthly payment for the rest of their life.
Joint & Survivor 75%
This option provides you with a greater monthly payment than Joint & Survivor 100% but decreases the monthly payment that your beneficiary receives after your death.
Joint & Survivor 50%
This option provides you with an even greater monthly payment and further decreases the payments that your beneficiary receives after your death.
Certain & Life
The 5-, 10-, and 15-year Certain & Life options provide you with a monthly payment for life. If you pass away within the designated period of time, those payments will then continue to your beneficiary for the remainder. The 5-year option provides the highest monthly payment, the 15-year is lowest.
Cash Refunds (Modified)
You receive a monthly payment for life and upon your death, your beneficiary receives a single sum payment of the remainder provided that there is still a balance to be paid.
Are you 65 or older and still working for the YWCA? You may choose to start receiving your benefits. We’ll send you a package with your options close to your birthday.
*The IRS requires that you start receiving your benefits at age 73.
Got a question? Contact us!
