How The Fund Works

Features
Withdrawals
You may be eligible to withdraw or take a distribution from your account(s) held at the YMCA Retirement Fund depending on your age, account balance and employment status at your Y.
Guide to Leaving
and Retiring

Fact Sheet for Leaving and RetiringRead More...
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Options When You Leave the Y

 

Options While You Are Working for the Y


 
When you leave the Y

If you no longer work for the YMCA and would like to take a withdrawal of your account balance(s) at the Fund, you can make your distribution request online. It’s easy, fast, and secure. In order to request a distribution online, you will need to log in to Your Account. If you do not have an online account, you can create one at www.yretirement.org/register

Once you log in to your account, select the Withdrawal/Rollover Request located under the Features menu on the left-hand side to start the process. Once your request is submitted, you can view the status of your distribution under the Withdrawal/Rollover Request feature.

Read the withdrawal/rollover requirements below for more information. We encourage you to consult a tax advisor or accountant before submitting your request.

Once your YMCA has processed your “exit interview” and has reported your final contribution to your retirement account, your YMCA will deactivate your account. After the Fund has been notified that you have left employment from the YMCA, you will receive a letter from the Fund.

What are my options when I leave the Y?
These are the options you have with your account balances at the Fund once you leave the YMCA.

1. If your Retirement Plan account balance is more than $5,000 and your Savings Plan account balance is less than $5,000, then both Plans can remain at the Fund. If you leave your accounts at the Fund, they will continue to earn daily compound interest.

2. If your Retirement Plan account balance is less than $5,000 and your Savings Plan account balance is less than $5,000, then both account balances must be withdrawn or rolled over to a qualified plan or IRA.

3. If your Savings Plan account balance is more than $5,000 and the Retirement Plan balance is less than $5,000, then the Savings Plan can remain at the Fund but the Retirement Plan must be withdrawn or rolled over to a qualified plan or IRA.

4. If either Plan balance is less than $5,000, within 180 days of leaving employment at the YMCA, you must take a withdrawal or roll it over to another qualified employer plan or IRA. If you do not notify us of your choice, the Fund will automatically roll over your distribution to a Safe Harbor IRA at Millennium Trust Company.

Neither you nor the YMCA can make further contributions once you have left employment. However, if you leave your accounts at the Fund, they will continue to earn daily compound interest.

If your account(s) does not qualify for a withdrawal, you can use the funds for an annuity as early as age 55.

If you have a YMCA Account and YMCA Account (Legacy), you can take a withdrawal based on your age and balance at the time you make the request:​


YOUR AGE YOUR BALANCE

YMCA ACCOUNT

YMCA ACCOUNT (Legacy)

55 or Older The combined sum of both accounts is $100,000 or less


If the above example is not applicable, you can take a withdrawal based on the following:


YOUR AGE YOUR BALANCE

YMCA ACCOUNT

Under 55 $5,000 or less when you request the withdrawal
55 or Older $100,000 or less when you request the withdrawal

YMCA ACCOUNT (Legacy)

Any Age $25,000 or less at the time you terminated Y employment

PERSONAL ACCOUNT

AFTER-TAX ACCOUNT

403(b) SMART ACCOUNT

ROLLOVER ACCOUNT

Any Age Any balance 

 

Partial Withdrawals
You may take a partial withdrawal from your accounts in the Retirement Plan or Savings Plan if:

  • You are eligible to take a full withdrawal from eligible accounts within that Plan (withdrawal rules for the YMCA Account and YMCA Account (Legacy) above may prohibit both a partial and full withdrawal from the Retirement Plan), and  

  • You have an available balance of $10,000 or more in that Plan, and

  • Your withdrawal does not result in a balance dropping to $5,000 or below.

If your balance becomes less than $5,000 as a result of a withdrawal, you must withdraw the entire account.

Only one partial withdrawal per Plan is allowed in a three-month period, and you may take up to four partial withdrawals from the same Plan in a 12-month period. There is no cost for the first and second withdrawal, however a $35 processing fee will be charged for the third and fourth withdrawal.

Required Minimum Distribution
Once you turn age 72, the IRS requires you to start taking annual required minimum distributions of at least a minimum amount from your Retirement Plan account and/or Savings Plan account.  

Taxes and Penalties
There is no tax implication for money rolled over to an IRA or eligible employer plan. For most other withdrawals, the Fund is required to withhold 20% of the taxable portion of your withdrawal for federal income taxes. If you are under age 59½, the IRS may require an additional 10% penalty at tax time.

Getting Your Money 
In order to request a distribution or check the status of your distribution, log in to Your Account. If you do not have an online account, you can create one at www.yretirement.org/register. 

Once you log in to your account, select the Withdrawal/Rollover Request located under the Features menu on the left-hand side to start the process. If you are eligible to take a distribution, you will be guided through the online withdrawal/rollover portal. Once you submit your request, the process can take up to 90 business days (not including mailing time).

The Employee Retirement Income Security Act (ERISA) requires spousal consent for certain transactions. Since the YMCA Retirement Fund's plans are either subject to those ERISA rules or has elected to adopt those provisions, your spouse must sign off to waive his/her rights related to certain transactions where their survivor benefit would be lessened or eliminated.

Your spouse must carefully read the form he/she is signing, approve and sign the consent to waiver in front of a Notary. Please note, your spouse’s signature cannot be dated before your signature.  

 


 

 
While you are working for the Y

Your After-Tax Account and Rollover Account may be withdrawn at any time. If you are age 59½ or older, you can withdraw your entire 403(b) Smart Account. However, until you reach age 59½, you may only withdraw your 403(b) Smart Account contributions if you meet the IRS requirements for a financial hardship withdrawal. No other accounts can be withdrawn while still working at a Y.

Hardship Withdrawal Rules While You Are Working For The Y
An employed participant who has made tax-deferred contributions to the 403(b) Smart Account may withdraw these contributions if they have a financial hardship.

Participants will no longer be required to take a loan from the Savings Plan before they can apply for a hardship withdrawal. However, they will be required to take a withdrawal of any other retirement, savings and welfare benefits sponsors by the Y including their Rollover Account and After-tax Account, if applicable, before being eligible for a hardship withdrawal.​

Participants will no longer be required to suspend contributions into the 403(b) Smart account for six months. They will be permitted to continue contributing to the 403(b) Smart Account when they take a hardship withdrawal. All participants who were subject to this suspension, will receive a letter from the Fund notifying them that they can restart contributions effective 1/1/2020.

Participants will no longer be required to submit supporting documentation of their hardship to the YMCA Retirement Fund. However, they will be required to certify that they have insufficient cash or other liquid assets to satisfy the financial need, meet the federal hardship requirements, agree to keep adequate supporting documentation of their financial needs, and provide such documentation to the Fund or IRS upon request.

The qualifying rules to take a hardship withdrawal have been modified to the following:

  • Medical Care: Expenses not covered by health insurance that were incurred or are expected to be incurred to obtain medical care for the participant, their spouse, tax dependents or their designated primary beneficiary under the Plan, and are deductible under Internal Revenue Code Section 213(d), without regard to whether the expenses exceed the applicable percentage of adjusted gross income in that section.

  • Purchase of Principal Residence: Costs directly related to the purchase of the participant’s principal residence, excluding mortgage payments.

  • Educational Expenses: Expenses of tuition, related educational fees, and room and board expenses, for up to the next twelve months of post-secondary education for the participant, his or her spouse, children, tax dependents or designated primary beneficiary under the Plan.

  • Eviction: Payment necessary to prevent the eviction of the participant from his or her principal residence or foreclosure on the mortgage on the participant’s principal residence.

  • Funeral and Burial Expenses: Expenses for the burial and funeral expenses for the participant’s deceased parent, spouse, children, tax dependents or designated primary beneficiary under the Plan.

  • Repairs for Damage to Principal Residence: Expenses for the repair of damage to the participant’s principal residence that would qualify for a casualty deduction under Internal Revenue Code Section 165 (determined without regard to whether the damage was a result of a federally declared disaster or the loss exceeds 10% of the participant’s gross income).

  • FEMA Declared Disaster Expense: Expenses incurred by a participant who, at the time of a FEMA-declared disaster, had a principal residence or principal place of employment located in an area designated by FEMA for individual assistance, and the expenses were result of that disaster.

Getting Your Money
In order to take a hardship withdrawal, you will need to complete a form, which can be obtained by sending an email to info@ymcaret.org. Once the Fund receives your original form properly completed, the process can take up to 90 business days (not including mailing time).

The Employee Retirement Income Security Act (ERISA) requires spousal consent for certain transactions. Since the YMCA Retirement Fund's plans are either subject to those ERISA rules or has elected to adopt those provisions, your spouse must sign off to waive his/her rights related to certain transactions where their survivor benefit would be lessened or eliminated.

Your spouse must carefully read the form he/she is signing, approve and sign the consent to waiver in front of a Notary. Please note, your spouse’s signature cannot be dated before your signature.