Participants

Frequently Asked Questions

Q) When will I receive my check?

A)The normal distribution processing time is 10-15 business days. Inaccurate or incomplete information will delay processing time.

Q) What are the tax consequences for a distribution?

A) A rollover into another qualified plan or an IRA does not have any tax consequences. Federal law requires that 20% of the distribution amount be withdrawn from the gross Distribution for Federal with - holding. You may be subject to an additional 10% penalty for early withdraw if you are under age 59 1/ 2, when you file your 1040 for the distribution year.

  1. I had a check payable to a rollover institution, I have changed my mind, what do I do?
  2. For a Freedom Acct issued check-send check back, voided with letter of instruction. As long as the check is received back the fee is $25.00 to reissue. If they cannot produce the check the fee is $55.00

**If Reliastar issues a check, they will only reissue to another rollover institution. Reliastar does not reissue as a lump sum or vice versa. The fee is $50.00. The same procedure as above applies. The voided ck and letter of instruction is sent to BCG. We then send to Reliastar.

Q) When do I get my 1099-R (participant) and where is it mailed?

A) Prior to February 1st, the year following the distribution. The 1099-R is mailed to the plan Trustee/Sponsor to be forwarded to the participant.
 

Q) When will we receive our 1099 package (plan sponsor)? What is in it? What do I do w/ it?

A) Prior to February 1st the year following the distribution. The package will contain the participant 1099-R forms, Form 945 (only if a lump sum was issued) and Form 1096 for the company. The 1096 & Form 945 should be mailed per the instruction sheet. The 1099-R should be mailed to the participant’s home.

Q) Can I take a distribution if I am still employed?

A) Yes, if you meet the following conditions:

    1. You are 59 ½ and the plan document allows for “in-service” distributions
    2. You are of “normal retirement age” as defined in the plan document
    3. You apply for and qualify for a loan or hardship withdraw
    4. You are 70 ½, you can take a Required Minimum Distribution (RMD)

     
Q) How do I apply for one of the above?

A) # 1, 2 & 4 , use the PDR and complete accordingly. # 3 use the appropriate loan or hardship request form.

Q) Where was the check mailed?

A) All checks mailed to Trustee unless other instructions are on file signed for by the Trustee