Payments can be "grossed-up" to accommodate the 20% federal tax withholding. Hardship withdrawals are available through TIAA after all other sources of income are exhausted, including retirement loans.įunds available for hardship withdrawal are limited to amounts originally invested in annuity contracts and annuity invested funds equal to 1) employee 5% contributions and 2) voluntary contributions from TIAA.Ĭontributions to mutual funds/custodial accounts at either vendor, transfers to annuity investments, and earnings from investments are not eligible for hardship withdrawals.ĭistribution amounts cannot exceed the need documented. In addition, a loan default will prohibit any future loans from your retirement plan. Each retirement carrier may have additional rules related to the type of investments involved or company policies.įees for loan administration charged by the retirement carrier, if applicable, may vary and are the responsibility of the employee.Įmployees who default on their loan will be subject to taxation by the IRS for the entire amount of the loan and penalties, if they are under age 59½. There is a maximum of three outstanding loans at any time. The IRS allows up to 10 years for a loan solely to purchase your primary residence. Loans can be obtained for active employees and retirees who are enrolled in a UK 403(b) or 457(b) retirement plan.Įmployees may borrow up to 50% of the balance in their 403(b) or 457(b) account with Fidelity or up to 45% with TIAA ($50,000 maximum). In addition to this exclusion, all retirees who keep retirement funds within the aforementioned retirement accounts are eligible to receive the overall exclusion ($31,1) which may be indexed for inflation each year.Ĭheck with your carrier, Fidelity or TIAA, for details specific to your account but here’s an overview. Schedule P provides tax filers with public pensions the ability to exclude a percentage of the current year retirement income based on years of service before and after Janu(see the instructions on Schedule P for more detail). Funds transferred to an IRA account and then subsequently distributed are not eligible for the exclusions provided under Schedule P. Retirement funds must stay in and be distributed directly from the retirement accounts including 403(b), 401(a), 457(b), Supplemental 403(b) and 415(m) to receive the potential tax exclusion provided on Kentucky Pension Income Exclusion “Schedule P”, which is for public pensions. UK retirees and former employees may exclude certain distributions from their retirement accounts from Kentucky state income tax if the retirement funds remain in the UK retirement accounts held with UK retirement carriers (Fidelity, TIAA). If you are a Registered Investment Advisor, please consult this document addressed to RIAs, issued by the University of Kentucky. This allows you to give Fidelity and TIAA permission to deduct advisor fees directly from your retirement savings account. You can pay for these advisor services by signing the form as well. ![]() Contact TIAA or Fidelity to obtain a form. If you already have an advisor, you can fill out the TIAA or Fidelity Registered Investment Advisor Authorization and Indemnification Form. You can learn more about setting up a meeting here. Associates from Fidelity and TIAA continue to provide free one-on-one consultations and reviews to help with your retirement planning needs. Selecting an advisor is completely your decision. ![]() If you contacted the RIA and want them to contact you in the manner you choose, that is OK. ![]() If an RIA contacts you by phone, UK email, in person or by "cold call," they have not followed these rules, and you might consider looking for an advisor who demonstrates professional ethical standards. RIAs are required to follow UK's solicitation rules. RIAs are not allowed to indicate they are affiliated with UK or its retirement plan vendors in any way. UK does not recommend or endorse any particular RIA over another. Our retirement vendors, TIAA and Fidelity, may each have a list of approved or preferred RIAs they can provide. Participants should discuss these services and fees with the RIA before making a decision. These advisors may provide other financial planning advice or services. You can arrange for this fee to be charged against your retirement account(s). A Registered Investment Advisor (RIA) is a person or firm registered with the Securities and Exchange Commission (SEC) and/or a state licensing authority as a provider of professional financial management services.Ī Registered Investment Advisor can provide investment advice and/or manage the allocation of your retirement accounts, but can also charge a fee for these services.
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