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Hardship withdrawals

Has an unexpected life circumstance created a need for you to access your retirement funds before you are eligible to start receiving distributions? You may be eligible to take a hardship withdrawal.

As of June 18, 2024, earnings from salary reduction contributions made by the participant are available for hardship withdrawal purposes. This change is an option made available under SECURE 2.0.

RCA 403(b) Retirement Program:

Hardship Distribution: A distribution made that is deemed necessary to meet an immediate and heavy financial need.

Approved Hardship Withdrawals from the RCA 403(b) Retirement Program:
Under a “safe harbor” in IRS regulations, a participant is automatically considered to have an immediate and heavy financial need if the distribution is for any of these:

  • Certain medical care expenses for the participant, the participant’s spouse, dependents or beneficiary.
  • Costs directly related to the purchase of a participant’s principal residence (excluding mortgage payments).
  • Tuition, related educational fees and room and board expenses for the next 12 months of postsecondary education for the participant or the participant’s spouse, dependents or beneficiary.
  • Payments necessary to prevent the eviction of the participant from the participant’s principal residence or foreclosure on the mortgage on that residence.
  • Funeral expenses and burial for the participant, the participant’s spouse, dependents, or beneficiary.
  • Certain expenses to repair damage to the participant’s principal residence.
  • Certain expenses and losses (including income) on account of a disaster declared by the Federal Emergency Management Agency (FEMA).

For more details, see section 7.9 of the Plan Document

RCA Retirement Plan:

Hardship Distribution: Distribution of amounts under the Plan may be made available to a participant (or a beneficiary) in the event a participant demonstrates a need based on an unforeseeable emergency.

Possible Hardship Withdrawals from the RCA Retirement Plan:

  • Medical care expenses for a sudden and unexpected illness or accident for the participant, the participant’s spouse, dependents or beneficiary.
  • Loss of the participant’s property due to casualty,
  • Other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant. The circumstances that will constitute an unforeseeable emergency will depend upon the facts of each case.

Exclusions and restrictions:

  • Examples of what are not considered to be unforeseeable emergencies include the need to send a participant’s child to college or the desire to purchase a home.
  • Withdrawals of amounts because of an unforeseeable emergency must only be permitted to the extent reasonably needed to satisfy the emergency need.
  • Payments will not be made if the hardship can be relieved by:
    • Insurance reimbursement or compensation
    • Liquidation of participant’s assets
    • Cessation of employee deferrals 

For more details, see section 7.2 of the Plan Document