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When You Can Take Your Money From the Annuity and 401(k) Retirement Plan

Generally, a distribution of your entire Individual Account may be made when you retire or you become disabled (as defined under the Plan), or you die.

  • Retirement. Under the Plan, retirement means that you separate from service, are at least age 55, and are receiving a pension benefit from the NEI Pension Fund or receiving Social Security retirement payments.
  • Disability. You are considered disabled under the Plan if the Social Security Administration determines that you qualify for Social Security Disability benefits.
  • Death. If you die, your spouse or other designated beneficiary will receive your Individual Account balance. If you don’t have a surviving spouse and you haven’t designated one or more beneficiaries under this Plan, or your designated beneficiaries die before you, your benefit will be paid to the person or persons you designated to receive a life insurance benefit under the terms of the National Elevator Industry Health Benefit Plan. Otherwise, your benefit will be paid to your estate.

401(k) financial hardship withdrawals

If you have a financial hardship (as defined by the IRS), IRS rules say you may withdraw your 401(k) contributions (but not including earnings) up to the amount of your financial need—minus applicable taxes. (If you’re under age 59½ when you make a hardship withdrawal, you may also be subject to a 10% early withdrawal tax penalty on the amount of the withdrawal.)

Employer contributions to your Annuity Account and Rollover Account balances are not eligible for hardship withdrawal.

The IRS defines a financial hardship as an immediate and heavy financial need—for example:

  • Paying tax-deductible medical expenses for you, your spouse, or a dependent
  • Purchasing your principal residence (not including mortgage payments)
  • Paying burial or funeral expenses for your parent, spouse, or a child

Highlights of when you can take money from the Plan

Distribution Scenarios

Below is a summary of when you can receive your account balance, based on certain situations. See the SPD and Summaries of Material Modifications for details, including information about the tax consequences of certain withdrawals.

While I’m working for a contributing employer if I have a financial hardship?

  • 401(k) Account: Yes, if you meet IRS eligibility requirements for a hardship withdrawal (taxes apply, and a tax penalty may apply if you’re under age 59½)
  • Annuity Account (contributions received before 1/1/2011): Yes
  • Annuity Account (contributions received on or after 1/1/2011): No
  • Rollover Account: Yes

If I leave covered employment before I retire or become disabled?

  • 401(k) Account: Yes
  • Annuity Account: Yes, but only contributions made to your account before 2011
  • Rollover Account: Yes

When I retire?

  • 401(k) Account: Yes
  • Annuity Account: Yes
  • Rollover Account: Yes

If I become disabled (and meet the Plan’s definition of “disabled”)?

  • 401(k) Account: Yes
  • Annuity Account: Yes
  • Rollover Account: Yes

Forms of payment if you retire, become disabled, or die

Here’s how your Individual Account balance can be paid when you retire or become disabled, or you die.

  • You (or your beneficiary, if you die) may receive your entire Individual Account balance in the Plan as a lump sum or in periodic installments.
  • Periodic installments can be for any period as long as the amount of time is less than your life expectancy or the life expectancy of you and your spouse.
  • The periodic installment payment option is flexible. You may change the frequency of the payments, the amount of each payment, or the number of months of payments. However, you can only do so if the total period remaining for the payments is less than your life expectancy or the life expectancy of you and your spouse.

What you need to do

  • See the SPD and Summaries of Material Modifications for specific rules about when you can take money from your accounts, how much you can take, and paying taxes on the amount you take.
  • Call 800-74-FLASH to request a distribution application. 
  • Be sure to have an up-to-date beneficiary form on file.

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Contacts

Important phone numbers and websites

Learn More

This website provides an overview of benefits for eligible members of National Elevator Industry Benefit Plans. Refer to the Summary Plan Description (SPD) or plan contract/certificate and plan amendments for a full description of benefits. If there is a discrepancy between the information provided on this website and the official plan documents, the information provided in the official plan documents will govern.