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403(b)/457(b): When Can I Begin Withdrawals?
ALERT!!
Effective 08/08/2008, no changes will be made to CCC’s legacy
website, now with Internet address www.ncompliancelegacy.com. Henceforth, www.ncompliance.com
goes directly to CCC's new, dynamic, database supported website.
For many months now, CCC has been developing and testing a new, dynamic, database-supported website,
which now resides at www.ncompliance.com, while at the same time maintaining this website, which is
now our legacy website (www.ncompliancelegacy.com). Development of the new website was essential to
allow CCC to provide dedicated sections of its website to more than 50 new clients accumulated since
publication of the Final 403(b) Regulations on July 23, 2007. We chose completion of the Plan Document
System on the new website as the appropriate time to migrate from the legacy website, even though
considerable work remains to be done. Specifically, we will be working with Vendors through the end
of calendar year 2008 to incorporate updated Vendor information into the new website. Moreover, 457(b)
Deferred Compensation Plan (DCP) information remains only on this legacy website, but those CCC clients
for which we are managing their 457(b) Plans may continue to refer to this legacy website until the full
migration has been accomplished.
We are very proud of our new website, especially the Plan Document System and the Content Management
System (CMS), which allows Client Employers and Vendors to manage the content of their own sections of
the website. We hope you share our enthusiasm and will create links form your own websites to your
dedicated sections of the CCC website. Doing so will provide everything your employees need to know
about their 403(b) Program.
Distributions From 403(b) Plans
One of the following "distributable events" must occur before
you are allowed to withdraw money from a 403(b) account:
- Age 59 1/2
- Severance From Employment
- Death
- Disability
- Hardship
Distributions from 403(b) accounts are not subject to a 10% early distribution
tax penalty (see Internal Revenue Code Section 72(t)) if they are made:
- After attainment of age 59 1/2
- After the death of the participant
- On account of disability
- As a lifetime annuity after separation from service
- To an alternate payee under a QDRO
One of the advantages of 403(b) plans over 457(b) plans is the ability
to receive in-service distributions after reaching age 59 1/2. Check out
this link for comparisons
of other features of these plans.
Frequently Asked Questions
Check out the answers to these Frequently Asked Questions.
Ask Your Own
Questions
Click on this link to pose your own questions to Carruth Compliance Consulting,
by electronic mail (email), telephone, fax, or any standard mail carrier.
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