Distribution Rules & Requirements

Complete guide to distribution, loan, and rollover requirements

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Distribution, Loan & Transfer/Rollover/Exchange Request Rules

Required Documents

In order to process a request, we must receive (a) the TCG Administrators 403(b) PLAN DISTRIBUTION, LOAN, EXCHANGE, TRANSFER, & ROLLOVER FORM, (b) copies of your most recent account statements for all 403(b), 457(b) and 401(a) accounts that you have with Plans of your Employer for Loan Requests.

If your transaction meets Plan, IRS and vendor rules, we will approve it and sign the Vendor forms approving the transaction.

Please see your Plan's Summary Plan Description on our website to review your Plan's allowable distribution options.

Hardship Distributions

Important Information

A Participant may receive a distribution of up to 100% of his or her account balance attributable to elective deferral contributions.

If you have any questions about the required documentation that you are required to retain and to provide upon request, please don't hesitate to contact customer services at (800) 943-9179.

Qualifying Hardship Reasons

Hardship distributions are available for the following specific reasons only. Each requires appropriate documentation as proof.

Definitions

  • * As defined in Internal Revenue Code Section 152
  • ‡ Damages must qualify as deductible under IRC Section 165

Loan Request Rules

Required Documents

  • TCG Administrators 403(b) PLAN DISTRIBUTION, LOAN, EXCHANGE, TRANSFER, & ROLLOVER FORM
  • Copies of your most recent account statements for all 403(b), 457(b) and 401(a) accounts that you have with Plans of your Employer

Loan Limitations

Maximum Loan Amount

The lesser of:

  • $50,000 reduced by the highest outstanding loan balance during the past 12 months
  • 50% of your vested account balance

Repayment Terms

  • General Purpose: Up to 5 years
  • Principal Residence: Up to 15 years for loans used to purchase a principal residence

Payments must be made at least quarterly in substantially level amounts

Interest Rate

The interest rate is typically prime rate plus 1-2%, as determined by your plan.

Default Consequences

If you fail to make payments, your loan may be deemed a distribution and subject to income tax and potential early withdrawal penalties.

Rollover & Transfer Options

Direct Rollover

The Plan will make the payment directly to your new IRA or employer plan.

Advantages:

  • No taxes withheld
  • No risk of missing the 60-day deadline
  • Simplest and safest method

60-Day Rollover

You receive the funds and have 60 days to deposit them into an IRA or eligible employer plan.

Important Warnings:

  • 20% will be withheld for federal taxes
  • You must use other funds to make up the 20% if you want to roll over the full amount
  • Missing the 60-day deadline results in taxation and potential penalties

Eligible Rollover Destinations

  • Traditional IRA
  • Roth IRA (may be taxable)
  • 401(k) plan (if plan accepts rollovers)
  • 403(b) plan (if plan accepts rollovers)
  • 457(b) governmental plan (if plan accepts rollovers)

Check with the receiving plan to confirm they accept rollovers and understand their specific requirements.

Need More Information?

→ View Special Tax Notice (Rollover Information)→ Browse Frequently Asked Questions

Contact TCG Administrators Customer Service:

(800) 943-9179

Monday - Friday, 8:00 AM - 5:00 PM Central Time