Withdrawals for Inactive Employees

Options When You Leave the Y

If you no longer work for the YMCA and would like to withdraw your vested 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 here.

Select the Withdrawal/Rollover Request located under the Account Services 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 or financial planning professional before submitting your request.

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?

Generally, that depends on the amount of retirement savings that you have in a Plan on the date that you leave YMCA employment and your age, as shown in this chart:

403(b) SAVINGS PLAN

*If you also have a vested 401(a) Retirement Plan balance greater than $5,000, then your 403(b) Savings Plan balance of $50.01 to $5,000 may remain at the Fund.

401(a) RETIREMENT PLAN

If you have an unvested balance in the Retirement Plan in any amount it will remain in your account with the Fund (even if your vested account is distributed) for a period of up to six (6) years earning daily compound interest. If you do not return to employment with a participating YMCA during the six years, your unvested balance will be forfeited. Should you return to employment at a participating YMCA within the six (6) year period, your Y will begin making contributions to your account in the Retirement Plan according to that Y’s contribution rate and you can earn additional service towards completing your vesting service requirement.

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

Any vested accounts that remain with the Fund, whether voluntarily or because they do not qualify for a withdrawal, may be eligible to be used for an annuity (lifetime income) as early as age 55.

Withdrawal Options by Account Type

The option to withdraw from the Plans is based on your account type(s) within the Retirement and Savings Plans, and your age and vested balance at either the time you terminate YMCA employment or make the request, as explained below. You can withdraw your vested balance according to the chart below.

You can review your account types and balances within either Plan by logging in to your account.

403(b) SAVINGS PLAN (All accounts are 100% vested)

401(a) RETIREMENT PLAN

Partial Withdrawals

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

• You meet the requirements for taking a full withdrawal per the chart above, AND:
• You have a vested balance of more than $10,000 in the Plan,
• The withdrawal is at least $5,000, and
• The withdrawal does not result in your balance dropping to $5,000 or below.

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 $50 processing fee will be charged for the third and fourth withdrawal within a 12-month period.

Required Minimum Distribution

Once you turn age 72 (age 73 if you were born in 1951 or later) and are no longer employed with a participating YMCA, you are required to start taking annual distributions of at least a minimum amount from certain accounts in the Plans. During your lifetime, these Required Minimum Distributions must be taken from all of your vested accounts in the Retirement Plan and Savings Plan other than the Roth Account or the Roth Rollover Account.

Taxes and Penalties

There is no tax withholding at the time that amounts are directly rolled over to an eligible IRA or eligible retirement 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 assess an additional 10% penalty at tax time. See the Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions (IRS Form W-4R).

Getting Your Savings

In order to request a distribution or check the status of your distribution, log in to your online account. If you do not have an online account, you can create one here.

Once you log in to your account, select the Withdrawal/Rollover Request located under the Account Services 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 at least 14 business days (not including mailing time).

If you are married, the consent of your spouse is required for certain transactions where their survivor benefit would be lessened or eliminated.

Your spouse must carefully read the form they are 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.