You Might Ask

Here are a few questions you may have about your JULY IRA

If I take a distribution, is it taxable?

A cash distribution may incur taxes. Any taxable portion may be subject to 20 percent federal income tax withholding at the time of distribution. State tax withholding may also apply.

Is there a penalty if I take a distribution before retirement age?

If you are not yet 59 ½ years old, a distribution from a retirement account is considered “early.” Early distributions are subject to a 10 percent excise tax penalty when you file your income taxes. This is in addition to tax withholding.

What if I am 72 or older?

If you are 72 or older, you are required to take a portion of your retirement account balance each year. This is called a Required Minimum Distribution (RMD) and is required by the federal government. The check for your RMD will automatically be sent to the address we have on file for you. You don’t need to do anything to initiate this distribution.

What happens if I borrowed money from my 401k retirement account?

If you have an outstanding loan from your retirement plan, you have two choices:

  • Report the loan as taxable income. Do nothing and JULY will issue you a 1099R and report the loan balance as taxable income for 2021. The remaining balance will be automatically rolled over to the new provider or distributed as requested.
  • Pay off the loan balance in full. Contact Participant Services at 888.333.6315 for a payoff amount and submit a check to the address specified in the instructions provided. The payoff must be received before the next 30 days of this letter date. The remaining balance will be automatically rolled over to the new provider or distributed as requested.

We’re happy to help. Call us.

If you need help or have questions, please call Participant Services at 888.333.6315. Reach us Monday through Friday from 7:00 AM to 6:30 PM CST.