Your money in the Plan is intended to be saved for retirement, and the special tax advantages are provided to encourage saving for retirement. Therefore, Federal law and the terms of the Plan strictly limit when you may withdraw your money. Withdrawals are permitted under the following circumstances:
Retirement
You can withdraw your entire account balance (or a portion of your account balance) if:
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- You have reached age 55; and
- You have retired from any direct or indirect employment or activity in the plumbing or pipefitting industry wherever such employment or activity may be performed; and
- You complete and submit the application form.
There are several important choices that you must make when you withdraw your money due to retirement. Contact the Trust Fund Office for details.
Disability
You can withdraw your entire account balance (or a portion of your account balance) if:
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- If you are determined by the Social Security Administration to be totally and permanently disabled; and
- You complete and submit the application form.
Death
Your beneficiary or beneficiaries can withdraw your account balance if you die.
You may name beneficiaries on the Enrollment & Beneficiary Form. [link to form] Your spouse must consent to any non-spouse beneficiary. If you do not name one or more beneficiaries on that form, then the Plan determines your beneficiary using the following hierarchy:
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- Your Spouse; if none then
- Your children; if none then
- Your parents; if none then
- Your siblings; if none then
- Your estate.
If your beneficiary is a minor, the Trustees may direct that the benefits be paid to a legally appointed guardian or conservator or to the person having custody or care of the minor, or may direct that the benefits be deposited in a federally insured savings account in the name of the minor.
Hardship
You may withdraw all or part of the money in your account in certain hardship situations. The hardship withdrawal rules are complex, so you should contact the Fund Office for details.
A hardship withdrawal may be permitted if you have an immediate and heavy financial need and no other funds are available to meet that need.
Although people may experience many different types of hardships, only the following circumstances are considered hardships under federal law and the terms of the Plan:
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- Payment of certain medical expenses not covered by insurance or otherwise for you or your Spouse, child, dependent, or named beneficiary;
- Expenses incurred to purchase, or to prevent foreclosure on, or eviction from, your primary residence;
- Certain tuition and related educational expenses for yourself, your spouse, child, dependent or named beneficiary;
- Burial or funeral expenses for the participant’s deceased parent, spouse, child, dependent or named beneficiary
- Certain expenses for repair to participant’s primary residence due to an unexpected emergency.
- Amounts needed to pay for expenses and losses (including loss of income) incurred by the participant on account of disaster declared by FEMA in a geographic area in which the participant’s primary residence or place of employment is located for which individual assistance is made available.
- You may withdraw any Pre-tax 401(k) contributions you have made to the Plan.
- You may withdraw any After-tax Roth 401(k) contributions you have made to the Plan.
- You may withdraw any Rollover contributions you have made to the Plan.
- You may withdraw any 401(a) contributions your employer has made to the Plan.
- You may withdraw any investment earnings (gains) that were made on your account.
You must complete a Hardship Withdrawal Form and provide sufficient supporting documents before a hardship withdrawal can be approved.
Cash-Out of Employer Contribution Account
You may withdraw the part of your account that is made up of Employer 401(a) contributions if:
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- You have participated in the plan for at least 60 months following the date the first employer contributions were made on your behalf; and
- There have been no such contributions made, or required to be made, to the Plan on your behalf for 12 consecutive months; and
- Your employer has not recommenced making Employer 401(a) contributions to the Plan; and
- You complete and submit an application form.
Payment of Small Employer Contribution Accounts
You may withdraw the part of your account that is made up of Employer 401(a) contributions if:
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- The amount in your Employer 401(a) account is less than $2,000; and
- No Employer 401(a) Contributions have been made to your account for two consecutive Plan Years; and
- Your employer has not recommenced Non-Elective Contributions to the Plan; and
- You complete and submit the application form.
Termination of Covered Employment
You may withdraw the full balance in your individual account if:
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- You have not been employed or self-employed in any capacity by a participating employer for 12 consecutive calendar months; and
- If the Fund has not received contributions or reciprocal payments on your behalf during those months; and
- If you are no longer working in the plumbing and piping industry in any capacity within the geographical jurisdiction of District Council #16; and
- You complete and submit the Termination Distribution Application and the Certification of Termination of Employment form. [Link to forms]
Automatic Cash-out of Small Accounts
Your entire account balance may be paid to you automatically in a lump sum, regardless of whether or not you have applied for the benefits if:
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- The amount in your account (excluding rollovers) is $1,000 or less ,or the amount in your account (excluding rollovers) is between $1,000.01 and $5,000); and
- You meet the requirements for a benefit payment on termination of covered employment as set forth under Termination of Covered Employment; and
- The Board of Trustees so directs.
Required Minimum Distributions at age 72
Generally you are required by law to begin withdrawing money from the Plan no later than April 1 following the year in which you reach age 72 (unless you are still employed, in which case you must begin no later than April 1 following the year you stop working). JHRPS will issue a payment automatically, but the participant may contact the Fund Office as you they approach age 72 to make any specific tax withholding requests.
Qualified Birth or Adoption of a Child
You may withdraw up to $5,000 from your Individual Account upon the birth of your child or following the adoption of a child. You must withdraw the funds within one year of the child’s date of birth or within one year of when the legal adoption of the child is finalized.
Distribution or Transfer due to Change in Employment Status
If you move from Covered Employment to non-Covered Employment, you may be eligible to take a distribution of your funds or apply for a plan-to-plan transfer. Please contact the Fund Office for eligibility requirements.
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