FAQs: Retiring in the Supplemental Plan 71281

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FAQs: Retiring in the Supplemental Plan 71281

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Retiring in the Supplemental Plan 71281, A 409A Deferred Compensation Plan

Purpose: The objective of this publication is to provide the considerations and steps necessary to retire in the ACC Retirement Plan.

Am I eligible for retirement in the plan? If you are working 30 hours per week or less and are within the age requirements, then you are eligible to retire in the plan and receive distributions.
     Per the plan document, the normal retirement date is the participant’s 65th birthday. If you are 65 or older, you may retire in the plan.

               Alert the plan administrator at 847-781-7800 and s/he will retire you in the plan.

    You are eligible to request early retirement between the age of 59.5 years old and before your 65th birthday.

            If you would like to request early retirement, let the plan administrator know, s/he will put your request to a vote with the Retirement Board of Trustees.

How do Supplemental Plan Distributions work? The Supplemental Plan is distributed in a structured manner. Upon eligible retirement in the plan, a Supplemental Plan balance less than the annual limit will be paid in one payment during the first, administratively feasible, quarter after retirement in the Supplemental Plan. If the Supplemental Plan balance is over the annual IRS limit, it will be automatically distributed - completely - over a five (5) year period in quarterly payments.

The payments are made by the ACC’s payroll company. The payment amount will change each quarter, based on your investments.

Supplemental Plan distributions can be deferred for a minimum of five (5) years. If you wish to defer the distribution start date, a completed Supplemental Plan Deferral form must be submitted to the retirement plan administrator a minimum of twelve (12) months before the retirement date in either of the ACC Retirement or Supplemental Plans. A communication, including a Supplemental Plan Deferral form, is sent out to all participants over the age of 55 every year reminding them of these rules. The form can be requested from the retirement plan administrator at any time.

How do I initiate distributions from the plan? To initiate distributions in the Supplemental Plan, contact the retirement plan administrator and alert him/her to your upcoming retirement. The retirement administrator will send you a Direct Deposit form and a W-4P Withholding Certificate for Pension or Annuity Payments to fill out and return. Once these forms are received, the retirement administrator will set up your Supplemental Plan Deferred Compensation payments to begin the next, administratively feasible, quarter.

When do I receive my Supplemental Plan payments? The payments are made on a quarterly basis. Each payment will enter your bank account on the last day of the quarter (March 31, June 30, September 30 and December 31).

How will I receive my W-2 tax documentation? Your W-2 tax documentation from the Supplemental Plan payments will be mailed to you. In the new year, they will also be available on the payroll company website. The retirement plan administrator will send you instructions for retrieving your W-2 from the payroll company website upon request. Because the W-2s are  available through the website, it is crucial to sign-in to the payroll company website when you initially receive the first-time sign-in email from the payroll company.

Can I take advantage of the parsonage (minister housing allowance) benefit when receiving my Supplemental Plan distributions? Yes, if you are ordained clergy! One of the great benefits of participating in the ACC Supplemental Plan is that you can receive parsonage (minister housing allowance) in retirement. As an affiliate of the Union for Reform Judaism, we are in a unique position to allow you to take advantage of this wonderful clergy benefit.

What do I have to do to be eligible for parsonage (minister housing allowance) in the Supplemental Plan? Each fall you will receive a Parsonage Transmittal form in the mail. It is crucial that you fill this form out completely and return it to the retirement administrator at the ACC office, info below. At the annual Retirement Trustees meeting which is generally held in November, they will vote your right to receive parsonage into the minutes. Voting your parsonage into the minutes is what makes it official. Without a completed form, the Trustees will not consider you in this vote.

*Please note, the parsoange reporting procedure will be changing in 2021, keep an eye out for further communications.

I did not receive a Parsonage Transmittal form in the mail, how can I get one? If you are retired and did not receive a form, please contact the retirement administrator. It may mean that you are not on the correct list, and that needs to be fixed! The form can also be found on the ACC website.

**Please remember, the actual amount that you take as parsonage is for you to determine with your CPA. The Retirement Board of Trustees are NOT voting to approve the actual amount, only that you have the right to receive parsonage as an ordained clergy person.

I am thinking of Retiring but would like some guidance on the different things to consider, apart from the Retirement and Supplemental Plans. Who can I speak with? The Retired Cantors Network is here for you! Call Janice Roger at 317-253-7452 or email her at janicelroger@gmail.com.

American Conference of Cantors Main Office
Phone: 1-847-781-7800
Fax: 1-847-781-7801
Address: 1375 Remington Road Suite M, Chicago, IL 60645

Retired Cantor’s Network
Janice Roger’s cell: 1-317-253-7452
Janice Roger’s email: janicelroger@gmail.com

Fidelity Investments
General phone number: 1-800-343-2476
NetBenefits: https://nb.fidelity.com/public/nb/default/home