New York State Deferred Compensation Plan Terms Of Withdrawal In Franklin
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To withdraw your membership, you should apply no earlier than 15 days after you leave public employment. Sign in to your Retirement Online account, go to the 'My Account Summary' area of your Account Homepage and click “Withdraw My Membership.” You can also apply by mail by submitting a Withdrawal Application (RS5014).
If you withdraw funds from a 401(k) before age 59½, you could be subject to a 10% penalty tax and lose some tax advantages. There are exceptions (see below). Between ages 73 and 75, depending on your birth year, you must start taking distributions from your 401(k).
Upon severance from City service, or upon reaching age 59½, participants can begin receiving distributions at any time by either accessing their account online or submitting a Distribution Form to the Plan's Administrative Office. Participants can change or stop distributions at any time.
With Roth 401(k)s, income taxes are not owed on the withdrawal of your contributions, but income taxes and the 10% penalty tax may apply on the withdrawal of earnings, unless an exception applies. It's important to keep taxes and penalties in mind when making an early withdrawal.
As always, you can speak with a Deferred Compensation Plan Customer Service Representative about the Plan and your account(s) on the phone by calling at (212) 306-7760, 9am to 5pm, Monday through Friday, except holidays.
Amounts held under the Plan as pre-tax are not taxable until you receive them. Upon distribution, your pre-tax benefits will be subject to Federal, New York State and local income taxes. Qualified Roth distributions are not subject to income tax.
You can: Call the HELPLINE at 1-800-422-8463 and an Account Executive will help you.
A team of 17 regional Account Executives who offer local on-site educational programs to employees of participating employers. A team of HELPLINE Representatives located in Troy, New York that is available Monday through Friday 8am until 11pm and Saturday from 9am until 6pm.
The Plan differs from other defined contribution retirement plans (like a 401(k) or 403(b)), because it is designed and managed with public employees in mind. The New York State Deferred Compensation Board establishes and administers the Plan policies.