Withdrawal Rules - aici 2

Overview

Retirement

The Account of a Participant who is (was) a Non-Collectively Bargained Employee shall become distributable once the Participant has a separation of employment with the Employer (including separation due to retirement, Disability or death).

Loans

The Plan allows you to borrow against the value of your account balance. It’s a way for you to borrow your own money. 

Hardship

Under the Plan, you are permitted to withdraw a portion of your account if you experience certain financial hardships.

Summary Plan Description

John Hancock Account Maintenance

>_ IndividualBenefitWidgetArea

Retirement

The Account of a Participant who is (was) a Collectively Bargained Employee shall become distributable to the Participant (or his Beneficiary or Beneficiaries if the Participant is not then alive) following the occurrence of any of the following events:

  • The Participant’s death;
  • The Participant’s retirement with all Employers at or after attaining age 59 1/2 (Normal Retirement Age), or becoming Disabled;
  • The Participant’s retirement under the Carpenters Pension Trust Fund for Northern California; or
  • The Participant has ceased working in Covered Employment for a period of six consecutive months.


The Account of a Participant who is (was) a Non-Collectively Bargained Employee shall become distributable once the Participant has a separation of employment with the Employer (including separation due to retirement, Disability or death).

Loans

The Plan allows you to borrow against the value of your account balance. It’s a way for you to borrow your own money. The interest you pay on your loan goes back into your own Plan account. You can model your repayment schedule and apply for a loan by contacting John Hancock. Loan documentation and processing instructions will be mailed to you. A loan setup fee of $100 will be deducted from your account each time you initiate a Plan loan.  You may have no more than two (2) loans outstanding at any time. The interest rate is fixed and will be equal to the Prime Rate (as published in The Wall Street Journal on the day the loan is initiated).

The minimum amount you can borrow is $500. The maximum loan amount available to you will be determined by your account balance.

You may borrow up to the lesser of:

  • 50% of your account balance, which excludes any non-elective employer contributions received; or
  • $50,000. Note: The $50,000 maximum is reduced by the amount of your highest outstanding loan balacne for the previous 12-month period.

For Employees participating under a Subscription Agreement, loan proceeds are limited to an Employee’s elective 401(k) contributions.

Loans must normally be repaid over a period of not more than five years. However, if you’re using the loan to purchase your principal residence, the loan can be repaid over a period of not more than thirty (30) years. Loans may be prepaid in full or in part at any time without penalty.  Failure to repay a loan in accordance with its terms will constitute default.  If you default on your Plan loan, under the federal tax laws, you will be considered to be in taxable receipt of your unpaid loan balance. As a result, you will have to pay income taxes on the amount of your unpaid loan and, if you are under age 59½, an additional 10% penalty tax. In addition, interest will generally continue to accrue (for purposes of determining your eligibility for any subsequent loan) until the loan is repaid or you separate from service. You should contact a John Hancock Participant Service Center Representative for additional information regarding the treatment of loans in default.

If you are on a leave of absence due to either a labor dispute or military service, either without pay or at a rate of pay that is less than your required loan repayment amount, your loan repayment may be suspended for a period equal to the lesser of one year or the duration of the leave of absence. In the event of certain military service, your loan may be suspended for a longer period.

If you retire or leave covered employment before your loan is repaid, you may be permitted to continue making loan payments, subject to the terms of your loan agreement and promissory note, or you may choose to pay off your loan in full. If you do not continue making loan repayments, or do not pay off your loan prior to the end of the grace period, as set forth in your loan agreement and promissory note, your loan will default and the outstanding loan balance will be treated as taxable income to you. If you are under age 59½, an additional 10% penalty tax may also apply. Alternatively, if you request a distribution prior to repaying your loan, the outstanding loan balance will automatically be deducted from your account balance before it is distributed to you. That outstanding loan balance will be treated as taxable income to you and if you are under age 59½, an additional 10% penalty tax may apply.

Hardship

Under the Plan, you are permitted to withdraw a portion of your account if you experience one of the following six financial hardships:

  1. Purchase of your principal residence;
  2. Payment of unreimbursed medical expenses incurred by you, your spouse or dependents, or to permit you, your spouse, or your dependents to obtain medical care;
  3. Payment of tuition and “related expenses” (as defined under federal law) for the next 12 months of post-secondary education (for example, college, graduate school and/or equivalent courses) for you, your spouse, your children or dependents;
  4. Payment to prevent eviction from your principal residence or foreclosure on the mortgage of your principal residence;
  5. Payment of funeral or burial expenses for your deceased parent, spouse, children or dependents (as defined in Section 152 of the Code, without regard to Section 152 (d)(1)(B) of the Code); or
  6. Payment to repair damage to your principal residence that would qualify for a casualty loss deduction under Section 165 of the Code (determined without regard to whether the loss exceeds ten percent (10%) of your adjusted gross income).

You may only withdraw the amount of your pre-tax contributions (not including any investment earnings), any Roth contributions and any rollover contributions you may have made to the Plan (including any investment earnings) needed to meet your hardship.  However, you may elect to increase the amount withdrawn to cover any applicable tax withholding on the withdrawal. The minimum amount you can withdraw is $500 (or, if less, the entire available amount). A Hardship Withdrawal fee of $75 will be deducted from your account each time a Hardship Withdrawal is initiated.  In reviewing your request for a hardship withdrawal, consideration will be given to the nature of your financial need, the documentation you provide and whether or not you have exhausted all other financial resources available to you, including a Plan loan or other withdrawal from the Plan. In other words, you will have to prove a financial hardship and that you (and your spouse and dependents) have no other monies immediately available at hardship.

In connection with your request for a hardship withdrawal, you will be asked to provide certain documentation, including a statement to the effect that the need cannot reasonably be relieved through reimbursement or compensation by insurance or otherwise, by liquidation of your assets, by stopping your contributions to the Plan, by taking other distributions and loans available under this Plan or other plans maintained by the Board of Trustees, or by borrowing from a commercial source on reasonable terms.

The amount you withdraw for financial hardship will be subject to optional federal income tax withholding. If you are under age 59½, an additional 10% penalty tax may apply. You may request a hardship withdrawal form by contacting John Hancock. You should, however, consult with your tax advisor before exercising this option.

This site uses cookies to collect certain information about your browsing session in order to enhance site navigation and analyze usage. By continuing to browse, you are agreeing to our site Terms of Use.

OK