Withdrawals for Inactive Employees

Options When You Leave the Y

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

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 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?

These are the options you have with your account balances at the Fund once you leave the YMCA.

1. If your Retirement Plan balance is more than $5,000 and your Savings Plan balance is more than $5,000, then both Plans can remain at the Fund. If you have a balance in only one of the Plans, and the balance is more than $5,000, that can remain as well.
2. If your Retirement Plan balance is more than $5,000 and your Savings Plan balance is $5,000 or less, then both Plans can remain at the Fund. Note that this exception does not apply once you reach the age at which you must begin to take Required Minimum Distributions (see discussion below); at that point, a Retirement Plan balance of more than $5,000 does not allow a Savings Plan balance of $5,000 or less to remain at the Fund.
3. If your Savings Plan balance is more than $5,000 and the Retirement Plan balance is $5,000 or less, then the Savings Plan can remain at the Fund but the Retirement Plan must be withdrawn or rolled over to an eligible retirement plan or an IRA.
4. If your Retirement Plan balance is $5,000 or less and your Savings Plan balance is $5,000 or less, then both Plan balances must be withdrawn or rolled over to an eligible retirement plan or an IRA.

For any balance of $5,000 or less which cannot remain at the Fund due to the rules stated above, you must complete a withdrawal or roll the eligible balance over to another employer’s eligible retirement plan or IRA within 180 days of leaving employment at the YMCA. If you do not, the Fund will automatically cash out or roll over your distribution to an IRA at Inspira Financial Trust depending on the amount and your age.

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 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 balance at either the time you terminate YMCA employment or make the request, as explained below. You can withdraw your balance according to the chart below.

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

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 balance of $10,000 or more 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 accounts in the Retirement Plan and your accounts in the 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 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 here.

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 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 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.