ICMA-RC • Attn: Workow Management Team • P.O. Box 96220 • Washington, DC 20090-6220 • Toll Free 800-669-7400 • www.icmarc.org • Fax 202-682-6439 46987-0420-CRD20NOER | 6
Beneciary Designations
ICMA-RC recommends that you conrm that we have current
beneciary information. Please review and update your beneciary
information as appropriate by accessing your account online at
www.icmarc.org/login.
Federal Tax Withholding
e CARES Act does not require a mandatory 20% federal income
tax withholding be applied to any qualifying coronavirus-related
distributions. If no withholding option is selected in Section 4 of the
form, however, ICMA-RC will default to 10% federal withholding.
Note: With the exception of withdrawals from an after-tax
contribution account.
Non U.S. Citizens: Generally, individuals who are not U.S. citizens
and residing outside of the United States are subject to 30% federal tax
withholding. A reduced rate, including exemption, may apply if there is a
tax treaty between your country of residence and the United States.
State Tax Withholding
Several states have mandatory tax withholding requirements. ICMA-RC
automatically withholds taxes for states which require withholding from
retirement plan withdrawals and will honor requests for withholding in
other states. Income taxation of payments from retirement plans varies
from state-to-state. You should seek state tax advice from the appropriate
state department of revenue if you have questions regarding state tax
withholding requirements.
You may request federal and state tax withholding percentages that dier
from those described above by completing the Tax Withholding Change
Form. is form is available online at www.icmarc.org/forms or by
contacting ICMA-RC.
Tax Reporting
Taxable amounts will be reported on a Form 1099-R, which will be sent
to you in January 2021.
New Optional Coronavirus-Related Distribution (CRD):
• Code Section 72(t), which applies an additional 10% tax on early
withdrawals, is waived for withdrawals up to $100,000 across all
retirement plans or IRAs for a qualied participant.
• ose individuals may prorate the payment of applicable taxes on
the income from the withdrawal over a three-year period.
• e withdrawal amount may be paid tax-free back to the plan over
the next three years.
• Repayments of these withdrawals would not be subject to the
retirement plan contribution limits.
Note: For in-service withdrawal requests, 401(a) Money Purchase Plans
have unique requirements. Please check with your employer to make
sure you are meeting applicable requirements.
VT Retirement IncomeAdvantage Fund
If your plan oers the VT Retirement IncomeAdvantage Fund (the
Fund), any assets you have invested in the Fund will be excluded from
your withdrawal request. If you would like to initiate withdrawals from
the Fund, please contact ICMA-RC for the appropriate withdrawal
forms.
You can transfer assets from the Fund to other investment options
available in your plan if you would like to have them distributed with
your withdrawal request. However, you should be aware that withdrawals
from the Fund prior to Lock-In proportionately reduce guaranteed
values.
After Lock-In, Excess Withdrawals will proportionately reduce and
potentially terminate available guarantees. For additional information,
please review the VT Retirement IncomeAdvantage Fund Important
Considerations document.
VantageBroker
If your plan oers VantageBroker, any assets you have invested in
VantageBroker will be excluded from your withdrawal request. In order
to withdraw funds from your brokerage account, you must rst transfer
the assets back to your core account at ICMA-RC. You can liquidate
assets in your brokerage account and transfer the assets back to your
core account online. Settlement of the sale of investments held in your
brokerage account may take up to three business days.
ADDITIONAL INFORMATION
