403(b) Plan Transaction Instructions

Loan:

Many 403(b) Service Providers allow for participants to take a loan against the assets held in their plan. If your Service Provider allows for loans, you will start the process by contacting them directly to request this transaction. It is important to note that Loans will need to be repaid (often with interest). Your Service Provider will work with you to decide on the technicalities of your loan, including the manner in which it will be repaid.

After completing your Service Provider’s Loan Paperwork, fill out Tax Deferred Solutions's Loan Request Form. Tax Deferred Solutions will contact your Service Provider to confirm your eligibility and the maximum amount you may borrow. Tax Deferred Solutions will then email a certificate of approval within 3-5 business days, which should be printed and submitted to your Service Provider with their required paperwork.

If the amount requested exceeds the available loan amount, Tax Deferred Solutions will issue an approval for the maximum amount allowed by the Service Provider. We strongly advise confirming the available amount with your Service Provider before submitting this request

Hardship:

A hardship distribution is a distribution of funds from your 403(b) account due to an immediate and heavy financial need. Seven circumstances are deemed by the IRS to constitute an immediate and heavy financial need:

• Medical expenses for the employee or his/her spouse or dependents
• Costs for the purchase of a principal residence
• Tuition and related educational expenses for the employee or his/her spouse or dependents
• Payments necessary to prevent eviction from or foreclosure on a primary residence
• Burial or funeral expenses for the employee’s parent, spouse, or dependents
• Repair of damage to the employee’s principal residence
• Expenses and loses incurred on account of a FEMA declared disaster

Other requirements particular to hardship distributions are:

• The amount of the hardship distribution cannot exceed the amount of the immediate and heavy financial need.
• Unless restricted by your Employer's plan, hardship distributions are permitted to be taken from employee contributions, qualified non-elective and matching contributions, and earnings on those contribution sources.

Your employer has hired Tax Deferred Solutions to authorize hardship distributions from its 403(b) plan. Accordingly, Tax Deferred Solutions only approves hardship distributions meeting one of the seven categories and requires supporting documentation. Particular requirements and examples of supporting documentation for each of the categories are listed below.

Transfer:

This refers to the transfer of your 403(b) assets from a plan under a former employer to that of your current employer. Your first step should be to establish a 403(b) plan with one of your current employer’s Participating Providers. After establishing the plan, obtain any paperwork that is required for the transfer of funds and complete the online Transfer Request Form. Tax Deferred Solutions will email the certificate of approval within 2-3 business days, which should be printed and submitted to your Service Provider with their required paperwork

Please note that a transfer is an optional transaction for employers. The ability to submit a transfer request does not guarantee that a transfer will be approved by either the former or the current employer. If a transfer is not allowed by an employer’s plan, you will be notified accordingly.

Rollover:

In the event that you are moving funds from another form of tax sheltered retirement savings account, such as a 401(k) or IRA, to your 403(b) plan, your first step will be to contact Tax Deferred Solutions to confirm whether this transaction is allowed under your employer’s plan . If so, you should establish a 403(b) plan with one of your employers Participating Providers. After establishing your plan, obtain your receiving vendor’s rollover paperwork.

Once you have received the Service Provider paperwork, complete the online Rollover Request Form. Tax Deferred Solutions will email the certificate of approval within 2-3 business days, which should be printed and submitted to your Service Provider with their required paperwork.

Please note the Tax Deferred Solutions Rollover Form is classified as the transfer of funds from a non-403(b) account into a 403(b). For transfers out of the 403(b) plan into any other type of retirement plan (such as 401(k) or IRA), please use the Tax Deferred Solutions Distribution Form.

Qualified Domestic Relations Order (QDRO):

A Qualified Domestic Relations Order (QDRO) is a court order necessary for the distribution of a participant’s account to a former spouse. A QDRO is commonly separate from a judgment of divorce, and provides the specifics of how the funds are to be divided.

Tax Deferred Solutions will review the court order to ensure compliance with applicable regulatory requirements. Upon approval of the court order, Tax Deferred Solutions will forward its findings to the distributing service provider(s) and all other parties involved. Tax Deferred Solutions also reviews drafts of orders prior to submission to a judge for signature in an effort to facilitate a smooth transaction once the signed order is submitted to Tax Deferred Solutions for approval. Please note the service provider(s) may require additional paperwork to complete the transaction and an original or certified copy of the court order.

Court orders may be sent via fax to the Tax Deferred Solutions Service Provider Team at (916) 221-5040 or mailed to 6939 Sunrise Blvd, Suite 250, Citrus Heights, CA 95610.

Please be advised that once Tax Deferred Solutions has been notified of a divorce – whether completed or pending – no transactions taken on the account will be approved until we receive the signed QDRO (if former spouse has a claim) or the Judgement of Divorce and Settlement Agreement confirming that the former spouse has no claim on the account.

Exchange:

This refers to the transfer of your 403(b) assets from one 403(b) Service Provider to another of your employer’s participating providers. As with a rollover, you will want to obtain paperwork from your receiving vendor (who must be on your current employer’s list of participating vendors), to initiate this transaction.

After contacting your sending provider to obtain any paperwork that may be required, complete the online Exchange Request Form. Tax Deferred Solutions will email the certificate of approval within 2-3 business days, which should be printed and submitted to your Service Provider with their required paperwork.

Disability:

Early 403(b) withdrawals are sometimes permissible in the event that you become permanently disabled. After completing your Service Provider’s distribution paperwork, fill out the online Disability Request Form.

Tax Deferred Solutions will verify any necessary information with your current or former employer before authorizing your transaction and emailing you a Certificate of Approval. Typical turnaround time for this transaction is between five and eight business days. Once a certificate of approval has been issued, it should be printed and submitted to your Service Provider with any required paperwork.

Death Claim:

In the unfortunate event that you are the beneficiary of a deceased 403(b) participant, you may want to obtain a distribution from the plan in question. Start by contacting the deceased’s Service Provider to request a distribution as the beneficiary of the plan- if possible, be prepared to supply the Service Provider with a copy of the Death Certificate

After obtaining the necessary paperwork from the 403(b) Service Provider, complete the online Death Claim Form. If the Service Provider was not already supplied with the Death Certificate one must be uploaded or faxed to Tax Deferred Solutions. Once we confirm the participant as being deceased, we will email the beneficiary the certificate approval, which should be printed and submitted to the Service Provider with any required paperwork.

Distribution:

IRS regulations allow for any individual who is 59 1/2 years of age and/or separated from service to withdraw funds from their 403(b) plan. If you meet these criteria, your first step will be to contact your 403(b) service provider to request a distribution.

After completing your Service Provider’s distribution paperwork, fill out the online Distribution Request Form. Tax Deferred Solutions will verify any necessary information with your current or former employer before authorizing your transaction and will email a Certificate of Approval, which should be printed and submitted to the Service Provider with any required paperwork .

Required Minimum Distribution:

The IRS requires participants to start making minimum withdrawals each year from their retirement accounts once they reach 73 years of age. In order to take your first Required Minimum Distribution (RMD), reach out to your Service Provider to obtain any required paperwork, and to determine the amount that you will be required to withdrawal.

After you receive any necessary paperwork and information, complete the Required Minimum Distribution Form. Tax Deferred Solutions will email a Certificate of Approval, which should be printed and submitted to the Service Provider with any required paperwork.

Be sure to keep the Certificate of Approval for your RMD! Since ongoing distributions must take place, your certificate does not expire. Should your Service Provider company ask for an approval in the future, it is not necessary to resubmit your request as long as you have the original Certificate of Approval.

Service Credit:

Transfer of funds from a 403(b) account to purchase service credit in a tax-qualified defined benefit governmental plan (i.e., pension plan).

To request approval for the purchase of service credit, obtain any Service Provider paperwork and fill out the Service Credit Request Form. Tax Deferred Solutions will email the certificate of approval, which should be printed and submitted to the Service Provider directly.