While you are working for the y

Your After-Tax Account within the 401(a) Retirement Plan if you have one, as well as your Rollover Account or Roth Rollover Account with the 403(b) Savings Plan may be withdrawn at any time. If you are age 59½ or older, you can withdraw your entire Tax-Deferred Account or Roth Account. However, until you reach age 59½, you may only withdraw your Tax-Deferred Account or Roth 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 No other accounts can be withdrawn while still working at a Y.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 contributions to the 403(b) Savings Plan in either the Tax-Deferred Account or Roth Account may withdraw these contributions and earnings if they have a financial hardship.

Participants are no longer required to take a loan from the 403(b) Savings Plan before they can apply for a hardship withdrawal. However, they are required to take a withdrawal of any other retirement, savings and welfare benefits sponsored by the Y including their Rollover Account, Roth Rollover Account, and After-Tax Account in the 401(a) Retirement Plan, if applicable, before being eligible for a hardship withdrawal.​

Participants are not required to suspend contributions into the 403(b) Savings Plan for six months. They are permitted to continue contributing to the 403(b) Savings Plan when they take a hardship withdrawal.

Participants are not required to submit supporting documentation of their hardship to the YMCA Retirement Fund. However, they are 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 contacting us. Once the Fund receives your original form properly completed, the process can take at least 14 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.

When You Leave the Y

If you are no longer working for the Y, you can learn more about the withdrawal process here.