Voya is committed to helping you prepare for your future—both during and after your employment.
You may be thinking that when you stop working for ABC, you must take all of your money out of the Plan. That’s not true! You can keep your savings right where it is, even after you’re no longer employed.
Distribution choices and rules can be complex. You are encouraged to talk with your tax advisor or financial planner before deciding how to take your distribution. Prior to making any distribution decisions, you should call the Voya Retirement Service Center at 888-888-8888 and speak with a customer service associate who will review your options, answer your questions and distribution request. For more information, you can also visit abcretirementplan.voya.com.
Your distribution options are based on the value of your account when you separate from service.
If your vested account balance is less than $1,000, it will automatically be paid to you as a cash distribution unless you elect to roll it over. If you choose a rollover, you will have 30 days after the date you become eligible to receive your distribution to roll it into a traditional IRA or another employer’s eligible retirement plan or convert it to a Roth IRA.
If your vested account balance is at least $1,000 but less than $7,000, it will automatically be rolled over into an IRA with Voya unless you elect a cash distribution, a rollover to a traditional IRA or another employer’s eligible retirement plan or convert it to a Roth IRA within 30 days after the date you become eligible to receive your distribution.
If your vested account balance is $7,000 or more, you can choose to:
- Take partial distributions at any time.
- Leave your money in the Plan.
- Take a lump sum cash distribution.
- Roll over to another eligible retirement account.
- Take a portion of your money in cash and roll over the rest.
- Request a distribution in installment payments.
Keep your savings in your ABC Retirement Plan
If your vested account balance is $7,000 or more, you can keep your ABC Retirement Plan account. There are several advantages to this option:
- Continue to enjoy the tax-deferred growth potential of the Plan.
- Your savings will remain invested in familiar funds, taking advantage of professional oversight and favorable institutional pricing available only to plans like the ABC Retirement Plan.
- The flexible distribution options are available to you at any time, allowing you to choose when to take withdrawals in the future.
- Access to your account through abcretirementplan.voya.com and the Voya Retire® mobile app, along with all of the financial education resources and tools, including myOrangeMoney® will continue.
Roll over1 your account balance
You can request a direct rollover of your vested account balance to another qualified plan or an IRA. No taxes will be withheld for a direct rollover and tax-deferred status for your balance will remain until you withdraw funds from the new plan or IRA.
To request a rollover, go to the Loans & Withdrawal section at abcretirementplan.voya.com and select Request a Withdrawal to begin the rollover process.
1 A rollover is not taxable to you until you take payment from that institution.
Take a distribution in cash1
Your vested account balance can be paid directly to you. Distributions of your before-tax contributions and any earnings on those contributions are considered taxable income in the year you take the distribution. If you are under age 59½ you may owe a 10% penalty in addition to the income taxes owed on the distribution amount. Distributions from your Roth 401(k) after-tax account are tax-free if your Roth account has been open for at least five years and you are age 59½ or older (or disabled).
1 Distributions from the Plan may be subject to 20% federal tax withholding. If you are under age 59½, you will have to pay the 10% additional income tax on early distributions for any payment from the Plan (including amounts withheld for income tax) that you do not roll over. Ordinary income taxes may apply. State and local taxes and withholding may also apply. Neither Voya ® nor its affiliated companies or representatives provide tax or legal advice. Please consult a tax adviser or attorney before making a tax-related investment/insurance decision.
If you go with option 2 or 3, you have some flexibility in how you structure your rollover or distribution:
- Installments: Have your distribution paid to you over time — either monthly, quarterly, semi-annually or annually. Your installment schedule can be changed, and a lump-sum distribution can be requested at any time.
- Partial distribution: Take a portion of your Plan account balance as a direct rollover or direct distribution and leave the rest in the Plan.
- Full distribution: Take a lump-sum distribution of your entire account balance.
If you have an outstanding Plan loan when you leave Voya, you must either pay off your loan in full or set up a loan payment schedule with Voya. Call the Voya Retirement Service Center at 888-888-8888 for details.
If you still have a balance in the Plan in the year that you turn 73 you must take a Required Minimum Distribution (RMD) each year. Your first RMD must be taken no later than April 1st of the year following you turn age 73.
RMDs are paid via direct deposit or check.