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.

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.

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. We will notify you when our records indicate you are required to take an RMD and we will calculate your RMD amount. You will need to complete a new RMD distribution request each year you want to take your RMD from your JULY IRA. If you have more than one IRA, the RMD amount for this IRA could be satisfied by a distribution(s) from another Traditional, SEP, or SIMPLE IRA (Roth IRAs are not subject to the RMD requirements).

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.