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Human Resources

Retirement Investors' Club (RIC) 403b Program

Distributions at Retirement/ Termination of Employment

Once you terminate from employment, you have a variety of options and are eligible to take a distribution at any time.

Wait to take distribution
Take income
Age 70 1/2
Purchase IPERS service credits
Rollover

Wait to take a distribution

When you terminate from employment, your money may stay fully invested in RIC. If you choose to leave your money invested in RIC, no forms are necessary.  Your money continues to defer taxes until you decide to take income or turn age 70 1/2 at which time you must begin taking at least the IRS required minimum distributions annually.

You have access to your account to make investment selection changes, provider changes, or distributions at anytime (inactive provider products may have restrictions and/or fees).

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Income options (taxable)

To request a distribution, contact your provider directly. You may take income in one or a combination of the following ways (some product restrictions and fees may apply with inactive provider products):

  • Total lump sum distribution (watch for surrender charges on inactive provider policies)
  • Partial lump sum distributions
  • Systematic/periodic payments (flexible)
  • Lifetime payments (irrevocable)
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Age 70 1/2

The federal government has established rules for pretax plans like the RIC 403b plan that apply when participants reach age 70 1/2.

Your provider will calculate your required minimum distribution amount upon request. You can elect to receive the entire value of your account, partial payments (not to be less than your required minimum distribution amount) or you may receive periodic payments over your life expectancy. If you do not elect a lifetime payment option, you have the option to take more than your required minimum amount at anytime.

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Purchase IPERS credits

You may request to move money (plan-to-plan transfer) from your RIC 403b employee contribution account to IPERS to purchase eligible IPERS service credits at anytime. This is a non-taxable transfer. Other tax-advantaged accounts such as IRAs, 401(k)s, 457s, etc., may also be options for funding an IPERS purchase.

To explore the possible benefits of purchasing IPERS credits, review Why Purchase Service? on the IPERS website. To determine your eligibility to purchase credits, review How to Purchase Service or contact IPERS toll free at 800-622-3849 (281-0020 in Des Moines) or email them at Info@ipers.org.

If IPERS approves your request to purchase, they will send you a cost quote. You may request to rollover your RIC 403b money to make the purchase. Simply forward to us (fax 515-281-5102) your IPERS Rollover/Transfer form and a copy of your IPERS cost quote; we will request the rollover from your provider. RIC will send you a copy of your rollover paperwork (signed by RIC) and your provider will send you a check for the amount you requested. Forward the check and the IPERS forms to IPERS within 60 days to complete the purchase.

If the money you wish to rollover from RIC is invested with an inactive provider, be sure to ask if surrender charges will apply.

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Rollovers

If you are at least age 59 1/2 (while employed) or terminated from employment you have the option to roll over all or a portion of your 403b assets to another eligible plan. This is a non-taxable event.

If the money you wish to roll is with an active provider, contact them directly to request the required paperwork . If the money you wish to roll is with an inactive provider, call them and ask if there are restrictions or penalties.

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