You may withdraw your After-Tax Account and Rollover Account.
A 403(b) Smart Account is subject to withdrawal rules. You cannot withdraw from any other account.
 

You may withdraw the entire account at any time. However, partial withdrawals are not allowed.
 

While you are working for a participating YMCA, you can borrow money from your accounts in the Tax-Deferred Savings Plan (the 403(b) Smart Account and the Rollover Account). If you have both a Rollover Account and a 403(b) Smart Account, the amount you borrow will be split proportionally between the two accounts. You are not allowed to borrow from any other account.
For more information, see Getting a Loan from the Tax Deferred Savings Plan
 

When you take a loan, your account balance is reduced by your loan amount. As you repay your loan, those loan payments are treated as contributions. If you use the Annuity Estimate Calculator, it does not factor in a full loan repayment when providing you with an annuity estimate. If you have an outstanding loan that you plan to repay prior to retirement, please contact the Fund's Customer Service Department at (800) RET-YMCA for an accurate annuity estimate.

 

You can get more information on the program, as well as apply for a loan, by clicking here.
 

If you are currently working for the YMCA and have made contributions to the
403(b) Smart Account, you may withdraw these contributions if you have a financial hardship. The law defines a financial hardship as:

• Medical expenses incurred, or to obtain medical care for yourself or for your dependents
• Purchase of your primary residence
• Tuition payments for the next 12 months of college or graduate school for yourself or for your dependents
• To prevent eviction from or foreclosure upon your primary residence
• Payments for burial or funeral expenses for your deceased spouse, parent, child or dependent
• Expenses for the repair of damage to your primary residence that qualify for a casualty deduction*

*A casualty deduction is a deduction from taxes under Section 165 of the Internal Revenue Code. It generally occurs if someone has a loss of at least $100 due to a casualty which is not covered by insurance. Normally the loss must exceed 10% of their adjusted gross income to be deductible, but this 10% requirement is not applicable for hardship withdrawals.

Before you qualify for a hardship withdrawal, you must first withdraw any After-Tax or Rollover Accounts you may have with the Fund. You must also use the loan available through the Tax-Deferred Savings Plan. By taking a hardship withdrawal, you do not avoid paying taxes on the withdrawal. Furthermore, you are subjected to restrictions on your tax-deferred contributions in the year you withdraw and in the following year. Lastly, you may not make any voluntary contributions for six months after taking a hardship withdrawal.
 

In order for the Fund to approve your hardship request, you must submit adequate supporting documentation along with your Hardship Withdrawal from the 403(b) Smart Account form. The Fund accepts the following types of documentation:

• Medical expenses: Copies of medical bills, Explanation of Benefit statements from an insurer indicating amounts not covered by health insurance, or other proof of out-of-pocket costs incurred as a result of unreimbursed medical expenses. In the case of ongoing medical treatment, a licensed physician's statement estimating planned treatment and associated employee or dependent cost.
• Purchase of primary residence: Copy of purchase and sales agreement, including estimated or actual closing costs, signed by both buyer and seller.
• Post-secondary tuition and expenses: Copy of acceptance or enrollment verification from a college or university, including copy of a bill or statement for tuition and related covered expenses.
• Payment to prevent eviction/foreclosure: Copy of eviction or foreclosure notice, including documentation of amount needed to prevent eviction or foreclosure.
• Burial or funeral expenses: Copy of bill, invoice, or estimate from service provider for covered services along with brief description of decedent's relationship to you.
• Property casualty repairs: Copy of bill, invoice, or estimate for repairs from a contractor, along with a written description of the casualty and related damage.

 

The money you have with the Retirement Fund consists primarily of contributions that were made pre tax as well as the interest the have earned. If you leave YMCA service and choose to roll over your accounts to another retirement account, you would first roll them over to a traditional IRA. Once in a traditional IRA you could convert that into a Roth IRA.

Roth IRAs differ from typically retirement plans and traditional IRAs. In those accounts, the contributions are either made pre tax or are tax deductible. Roth IRAs contain after-tax contributions but the earnings in the account are paid out tax free when you take a distribution. In converting a traditional IRA to a Roth IRA, you will be subject on income taxes on the amount you convert. This may be a significant amount that you will need to cover with funds not deposited in the IRA.

However, the primary benefit you lose by transferring the money out of the Fund is the ability to annuitize it at our subsidized rate.