Church Pension Group | Rollovers and Withdrawals

Rollovers and Withdrawals

You may…

  • Be able to roll over your account balance from another retirement plan into your Defined Contribution Plan.
  • Make withdrawals while you are working if you are at least age 59½, or in the case of serious financial hardship.
  • Borrow from your account.

Withdrawals

  • If you make withdrawals after age 59½, the IRS's 10% tax penalty on early distributions is waived.
  • If your employment terminates and you are at least age 55, the 10% tax penalty is also waived.
  • If you are facing a financial hardship, you can make a withdrawal with the consent of your employer and plan administrator.
  • The taxable portion of your account is subject to 20% mandatory federal income tax withholding unless it is directly rolled over to an IRA or another retirement plan.

Loans

You may take out a loan from your account, but loans are subject to the following:

  • In general, you can borrow up to half of your account balance – up to $50,000.
  • The minimum loan amount is $500.
  • The maximum repayment period is five years – 15 years if the loan is for the purchase of your primary residence.
  • You cannot have more than two loans outstanding at one time.
  • A fee will be applied to your account if you initiate a loan.
  • Loans are repaid by Automatic Clearing House debits through your bank account.

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