Request a Withdrawal or Loan
How to request a withdrawal or loan from my investment carrier
You may request a withdrawal from your 403(b) retirement
plan by contacting your investment
carrier(s) directly. There are some restrictions on when
you are eligible to withdraw the contributions that you put
into the plan. Please carefully consider all your options
before you withdraw money from your retirement plan. All withdrawals
and distributions from the plan are subject to federal and
state taxes. You may be subject to a 10% federal tax penalty
if you make a withdrawal before age 59 ½. In addition, the
federal government requires that 20% of your withdrawal be
withheld as a prepayment of your federal income tax due on
the taxable portion of the withdrawal. This 20% withholding
requirement does not apply to direct rollovers to an IRA or
a new employer's retirement plan. Contact your investment
carrier(s) to request a withdrawal and for complete details
about tax implications.
Generally, withdrawals and distributions from your employee contributory amount may commence upon the
occurrence of any one of the following events:
- Your disability, as defined in Section 72(m)(7) of the IRS Code,
- Your retirement,
- Your death,
- Your attainment of age 59 ½,
- Your termination of employment with Duke, or
- Your encounter of a financial hardship as defined in the IRS Code and
relevant regulations (subject to a six month suspension of employee and employer
contributions).
The funds that Duke contributes towards eligible faculty and monthly paid
staff may be withdrawn only upon separation from service, retirement, or death.
These funds are referred to as an employer contributory amount and are subject
to any restriction. limitation, or fee contained in the contract or agreement
with any applicable investment carrier.
You may also request a loan from the contributions that you put into the plan if you participate with one
of our annuity vendors, AIG Retirement and TIAA-CREF. When you take out a loan, you are simply borrowing money
from your retirement plan account. You will repay the loan amount and interest through quarterly payments
directly to the investment carrier. The interest you pay on the loan is not tax deductible. However, there
are no taxes or penalties unless you default on the loan. If you default on your repayments, you will be
taxed as if the outstanding balance of your loan was distributed to you and might possibly include a 10% penalty,
if you are under the age of 59 ½. Contact AIG Retirement or TIAA-CREF to apply for this type of loan.
View investment carrier telephone numbers and website addresses.
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