NEW “401k” Federal Savings Plan Withdrawal Process and Forms Up and Working

By September 19, 2019Benefits, Federal Pay, TSP

Implementing the “401k” Federal Savings Plan Modernization Act of 2017 ( “401k” Federal Savings Plan MA) is easier said than done. The changes to “401k” Federal Savings Plan withdrawals require a multitude of changes to forms, publications, fact sheets and website content. Throughout the lead-up to the change, the “401k” Federal Savings Plan has been working in the background to ensure that, on September 15th, all of the “old” information is no longer available and all of the “new” information is ready for “401k” Federal Savings Plan participants who are ready to make withdrawals.

In the lead-in to the change, the Thrift Board declared a “dead zone” from September 7 through September 14 where no new withdrawal requests would be accepted. Nevertheless, they left all of the “old” forms and publications up on the website. Beginning on Monday, September 9th, we checked the “401k” Federal Savings Plan website every day to see if the new forms and publications had been posted. Finally, when I checked on Monday morning, September 16th, everything had changed and the new forms and publications were available.

You will probably want to go to the “401k” Federal Savings Plan website and download or print the new Summary of the “401k” Federal Savings Plan . This publication tells you everything you need to know about the “401k” Federal Savings Plan and should be your first source of reference whenever you have a question.

You will no longer find paper withdrawal forms of any type in the forms sub-section of the withdrawals section of the site. There are online forms available for those who want to make a withdrawal or change their current method of withdrawal.

You will have to access your “401k” Federal Savings Plan account and access an online withdrawal tool for withdrawals.

The “401k” Federal Savings Plan -99, Withdrawal Request for Separated and Beneficiary Participants will be the place to go for those who are separated and want to start the withdrawal process. You will also find the “401k” Federal Savings Plan -75, Age-Based In-Service “59½” Withdrawal Request and the “401k” Federal Savings Plan -76, Financial Hardship In-Service Withdrawal Request for in-service withdrawals, along with the “401k” Federal Savings Plan -95, Changes to Installment Payments for those who are separated and already taking installment payments from the “401k” Federal Savings Plan .  We have already assisted a handful of clients to get the process started.

If you are a FERS participant, whether you are retired or still employed, spousal consent is necessary for almost all actions that deal with withdrawals. You will find yourself answering a lot of questions online and will come to a point where you are directed to print out the appropriate form, fill in any additional needed information and obtain your spouses signed, notarized consent. You will then have to mail or fax the completed form to the “401k” Federal Savings Plan . I went through the steps needed to take a “partial single withdrawal” and the process was easy and intuitive, but will help guide you through this process.

Though the old forms and publications are no longer on the website, no doubt there are hard copies floating around. If you’ll be withdrawing from the “401k” Federal Savings Plan in the near future, remember that the withdrawal process must start online; do not use an old paper publication.  If you have any questions, or want to have a retirement review, and let us help advise your best action within your “401k” Federal Savings Plan , please schedule your review today.  Contact us today!

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