Skip to main content
Board of Benefits Services
Menu

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.

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