Early Withdrawal Options
Access retirement funds in times of need
Participants have access to penalty-free early withdrawals under certain circumstances. The following provisions are part of the RPB Plan.
Typically, participants who are still working face a 10% penalty for withdrawing funds from their account before the age of 59.5. Under Secure 2.0, that penalty is waived if the participant is:
- Impacted by a qualified federally declared disaster
- The participant can withdraw a maximum of $22,000 without paying the 10% early withdrawal penalty.
- The window to take a disaster recovery distribution opens on the first day of the incident period for that qualified disaster and closes 180 days after the latest of (1) the first day of the incident period or (2) the date of the disaster declaration.
- All or part of the distribution may be repaid within three years of the date of receipt, if the participant chooses.
- The distribution may be included equally in income over three years starting in the year the participant receives the distribution, unless they choose to be taxed in full in the year of receipt.
- If some or all of the distribution is repaid, the participant may file amended federal income tax returns to claim a refund of the tax attributable to the amount of the distribution that was included in income for the applicable years.
- To qualify, the participant's primary residence must be located in the disaster area, they must have sustained economic loss because of the disaster, and the disaster must have occurred after January 26, 2021.
- Visit NetBenefits and select "Withdrawals/Loans" to process this early withdrawal option penalty-free.
- A victim of domestic abuse
- The participant may request a withdrawal of up to $10,300 or 50% of their account balance, whichever is less. Participants have the option to repay the withdrawal over three years to their RPB retirement account and can work with their tax advisor to recover applicable income taxes on the money they repay.
- To qualify, the participant can self-certify their status as a victim of domestic abuse within one year of the date they experienced the abuse.
- Visit NetBenefits and select "Withdrawals/Loans" to process this early withdrawal option penalty-free.
- Diagnosed with a terminal illness
- To qualify, the participant must provide sufficient evidence of the terminal illness as required by the IRS.
- Participants have the option to repay the withdrawal over three years to their RPB retirement account and can work with their tax advisor to recover applicable income taxes on the money they repay.
- Call Fidelity at 800.343.0860 to process this early withdrawal option penalty-free