EXPERT ADVICE, EXCEPTIONAL SERVICE

Upon selecting Login on the top right corner of the screen, select “Forgot User ID or Password.” Enter your role, SSN#, birth date, and zip code. Your login credentials will then be set to the default settings:

• User ID: your social security number entered without dashes
• Password: last four digits of your social security number

For security, we require phone verification in order to reset your security questions. You may call the Plan support team at 866-840-6441. We are available Monday through Friday from 8:30 AM to 5:30 PM MST.

From your Dashboard, select Change Contribution Rate from the Contribution Rate box on the right side. The website will then walk you through this process. After changing your contribution rate, please note that it is your responsibility to follow up with your payroll department or check your paystub to ensure this change took place. As the recordkeeper, we record the change and let your company know about the change, but your payroll department is responsible for implementing this change when they process payroll.

Traditional 401(k) Contributions:
Contributions are made pre-tax (Federal/State), which means you avoid taxes now. Distributions from the plan will be subject to tax which means you pay the tax later. Good for older participants in a high tax bracket now and in a lower tax bracket at time of distribution.

Roth 401(k) Contributions:

Contributions are made after-tax (Federal/State), which means you pay taxes now. Distributions from the Plan avoid taxes (later). Good for younger participants in a lower tax bracket now, higher tax bracket at time of distribution.

Go to “Forms & Reports” and then “Reports”. Under Create Reports, select the “Standard Participant Statement Certificate incl. PPA” option. Enter the time period that you would like the statement generated for your account.

You will first need to contact the financial institution (or maybe your prior employer) where your account is currently held and follow their instructions for transferring your funds to Charles Schwab Trust Bank. When requesting a rollover from them, please refer to the Direct Rollover Contribution Instructions and Form, located under “Forms & Reports” and “Forms”.

Depending on the terms your retirement plan, you may have the option to request a loan, a hardship withdrawal, or an In-Service distribution. You should refer to the Summary Plan Description, located under “Forms & Reports” and “Forms”, for more information about these options.

Generally, you have four options for handling your retirement savings:

1. Leave your retirement savings in your former employer’s plan (if your account balance is greater than $5,000).
2. Move your retirement account into a new employer’s plan (if allowed by your new employer’s retirement plan).
3. Rollover your retirement account into an Individual Retirement Account (IRA).
4. Cash out your retirement account (taxes will be assessed on pretax contributions and early withdrawal penalties may apply)

After your request has been received along with all required documentation, your request will be sent to the Plan Administrator for approval. Once the approval has been received, the normal processing time is approximately ten business days.

• Once your completed, signed Distribution Election Form has been received and approved by the Plan Administrator to process your distribution from the Plan, processing takes approximately ten business days, because there are many steps in processing your distribution request.
• Before your account can be liquidated to fund your distribution, it may take up to three business days to confirm that the distribution event meets Internal Revenue Service guidelines and the terms of the Plan.
• To fund your distribution it is required that the investments held in your account be liquidated (sold). The sale of the investments in your account can take three days to process and settle the liquidation trades.
• Once the proceeds have been received by the Plan trust for distribution to you, the Plan Administrator (your prior employer) must approve this final disbursement from the Plan’s trust account to you, and this process may take two or more business days.
• When the disbursement has been approved by the Plan Administrator, The Charles Schwab Trust Bank will make the distribution as directed on your Distribution Election Form. The distribution proceeds should be then received within several business days based upon your distribution instructions.

A Coronavirus-Related Distribution (CRD) would be considered ordinary income and subject to income taxes, but it is not subject to the 10% early withdrawal penalty under Tax Code 72(t), if it is taken prior to December 30, 2020.

Also, it is normally required that 20% of your lump sum distribution is withheld and transmitted to the Internal Revenue Service as a mandatory withholding deposit credit toward your annual Federal Income Taxes. For A CRD, the mandatory 20% withholding is replaced by 10% discretionary withholding – which means that you can waive (or change) the withholding amount at the time of the distribution by completing IRS form W-4P. Keep in mind that withholding is NOT the amount of tax that is due on the distribution. The withholding is only a deposit to the IRS toward the Federal income taxes that you owe for the year. The CRD distribution will normally be subject to income taxes in the year of receipt; however, the CARES Act allows you to either include the distribution in your taxable income in 2020, or, you can spread this out over a 3 year period. Additionally, you can repay all or some of the CRD to a qualified retirement plan or Individual Retirement Account (IRA) over a 3-year period to reduce the tax impact.

There is an option to repay the Coronavirus-Related Distribution (CRD) to either a qualified retirement plan or IRA over the 3-year period commencing with the date of your CRD. Repaying a CRD will reduce the tax impact of your taxable distribution; however, you may be required to amend some or all of your Federal income tax returns to obtain a refund of some or all of the income taxes that you paid on the CRD.

To repay your CRD, you can make a one-time payment or in multiple payments over the 3-year period commencing with the date of your CRD to a qualified retirement plan or IRA. These funds will be categorized as a “rollover” and cannot be paid back through payroll deductions. Please note, if you choose to pay the full amount back during the applicable 3 year period, this amount must include any taxes that were withheld or paid relating to the CRD. To receive a refund of taxes that were paid by you on the CRD or withheld from your CRD, you may be required to amend your prior Federal tax returns.

No. However, to obtain a refund on some or all the taxes you paid your CRD you must deposit the funds the funds in a qualified retirement plan or IRA within 3 years from the date of the CRD.

No.

No. You must receive your CRD by December 30, 2020.  You must request your CRD by December 11, 2020, so Jocelyn Pension Consulting has enough time to complete this request by December 30, 2020. 

No, you can only receive a distribution up to your vested balance in the Plan.

No. The maximum amount of CRDs that you can receive in 2020 is $100,000.

Under the recent CARES Act Legislation, participants can request 100% of their vested account balance up to $100,000 if one of the following conditions applies:

• They are diagnosed with COVID-19 or coronavirus disease by a test approved by the Center for Disease Controls and Prevention (CDC);
• They have a spouse or dependent(s) who was diagnosed with COVID-19 or coronavirus disease by a test approved by the Center for Disease Controls and Prevention (CDC);
• They have experienced adverse financial consequences as a result of being quarantined, furloughed or laid off, or having work hours reduced due to such virus or disease, being unable to work due to lack of child care due to such virus or disease, or closing or reducing hours of a business owned or operated by me due to virus or disease, or other factors as determined by the Treasury Secretary.

It should be noted that the loan limits of 100% of a participant’s vested account balance in the Plan up to $100,000 is only available during the period commencing March 27, 2020 and ending 180 days later. Otherwise, the regular plan loan limits apply which are 50% of the participant’s vested account balance up to $50,000.

If one of the above conditions has been met, you can request a CRD by logging into your account and completing the Coronavirus-Related Distribution Form, which can be found by selecting “Forms & Reports,” “Forms,” and “Form Group: Distribution Forms.”

Under the recent CARES Act Legislation, loan repayments due between March 27, 2020 and December 31, 2020 can be delayed until January 1, 2021 if one of the following conditions applies:

1. You are diagnosed with COVID-19 or coronavirus disease by a test approved by the Center for Disease Controls and Prevention (CDC);
2. You have a spouse or dependent(s) who was diagnosed with COVID-19 or coronavirus disease by a test approved by the Center for Disease Controls and Prevention (CDC);
3. You have experienced adverse financial consequences due to the virus resulting from being quarantined, furloughed or laid off; having work hours reduced; being unable to work due to lack of child care; closing or reducing hours of a business owned or operated by you; or other factors as determined by the Treasury Secretary.

If you believe one of the above conditions applies, please reach out to your payroll department to discuss ceasing loan payments.

Unfortunately, most plans limit you to one loan at a time, so you can’t take out a second loan, but you have three options:

• You have the option of a 1-year extension period for plan loan repayments on your current loan for any such loan repayment that occur during the period beginning on March 27, 2020 and ending on December 31, 2020. Upon expiration of the 1-year period, any subsequent loan repayments must be appropriately adjusted to reflect the delay and any interest accruing during the delay, over the extended period. The period of the delay is not counted against the 5-year loan term.
• You could pay off your current loan balance and then request a loan with the new maximum thresholds, which are the lesser of: (1) $100,000 or (2) 100% of your vested account balance in the Plan. It should be noted that the loan limits of 100% of a participant’s vested account balance in the Plan up to $100,000 is only available during the period commencing March 27, 2020 and ending 180 days later. Otherwise, the regular plan loan limits apply which are 50% of the participant’s vested account balance up to $50,000.
• You could request a Coronavirus-Related Distribution (“CRD”), which would allow you to take an in-service distribution from the Plan for your vested account balance up to $100,000. This CRD would not be subject to the 10% early withdrawal penalty under Tax Code Section 72(t). The CRD would be considered ordinary income and subject to income taxes, but these income taxes are spread out over a 3-year period, and you have the option to repay the CRD (to a qualified plan) over the 3-year period to reduce the taxable impact to you. The CRD must be taken between January 1, 2020 and December 30, 2020.