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OMNI® 403(b) Plan Transaction Instructions

Loan:

Many 403(b) Service Providers allow for participants to take a loan against the assets held in their plan. If your Service Provider allows for loans, you will start the process by contacting them directly to request this transaction. It is important to note that Loans will need to be repaid (often with interest). Your Service Provider will work with you to decide on the technicalities of your loan, including the manner in which it will be repaid.

After completing your Service Provider’s Loan Paperwork, fill out OMNI’s Loan Request Form. OMNI will contact your Service Provider to confirm your eligibility and the maximum amount you may borrow. OMNI will then email a certificate of approval within 3-5 business days, which should be printed and submitted to your Service Provider with their required paperwork.

If the amount requested exceeds the available loan amount, OMNI will issue an approval for the maximum amount allowed by the Service Provider. We strongly advise confirming the available amount with your Service Provider before submitting this request

Hardship:

A hardship distribution is a distribution of funds from your 403(b) account due to an immediate and heavy financial need. Six circumstances are deemed by the IRS to constitute an immediate and heavy financial need:
  • Medical expenses for the employee or his/her spouse or dependents
  • Costs for the purchase of a principal residence
  • Tuition and related educational expenses for the employee or his/her spouse or dependents
  • Payments necessary to prevent eviction from or foreclosure on a primary residence
  • Burial or funeral expenses for the employee’s parent, spouse, or dependents
  • Repair of damage to the employee’s principal residence
Other requirements particular to hardship distributions are:
  • The amount of the hardship distribution cannot exceed the amount of the immediate and heavy financial need.
  • Hardship distributions can only be made from employee contributions and cannot be made from earnings on those contributions.
  • You cannot contribute to your 403(b) account for 6 months after a hardship distribution is approved. (Any current employee contributions will be stopped upon approval of a hardship distribution.)
  • After the 6 month restriction period has ended, contribution(s) will be automatically restarted in accordance with your most recent Salary Reduction Agreement(s). You are not required to resume salary reductions, and may submit a Salary Reduction Agreement at any time to stop further deferrals.
Your employer has hired The OMNI® Group to authorize hardship distributions from its 403(b) plan. Accordingly, OMNI® only approves hardship distributions meeting one of the six categories and requires supporting documentation. Particular requirements and examples of supporting documentation for each of the categories are listed below.

1. Medical expenses for the employee or his/her spouse or dependents
REQUIREMENTS:
Expenses must not be covered by insurance. If the participant is not the recipient of the medical care, documentation showing the relationship must be provided (e.g. copy of federal tax return; marriage certificate)
SUPPORTING DOCUMENTATION:
- Medical bill dated within the last 3 months showing the amount due
- Explanation of benefits from your insurance company dated within 3 months
- Notice from collection agency dated within 3 months
- Estimate of treatment costs from your doctor dated within 3 months

2. Costs for the purchase of a principal residence
REQUIREMENTS:
Costs do not include mortgage payments
SUPPORTING DOCUMENTATION:
- Purchase contract AND Good Faith Estimate (if applicable).
- Purchase contract must be signed by both buyer and seller.
- Purchase contract must include selling price and property address.
- Closing date in purchase contract must not have passed

3. Tuition and related educational expenses for the employee or his/her spouse or dependents
REQUIREMENTS:
Educational expenses must be for the next 12 months of post secondary education
SUPPORTING DOCUMENTATION:
- Tuition, room and board and/or meal plan bill not covered by financial aid or loans
- Written estimate of book costs Lease agreement for off campus housing
- Written estimate of projected costs AND course catalog information and fee schedules on educational institution letterhead
- If the employee is not the student, documentation showing the relationship must be provided (e.g. copy of federal tax return; marriage certificate)

4. Payments necessary to prevent eviction from or foreclosure on a primary residence
REQUIREMENTS:
The eviction date or date for payment must not have passed
SUPPORTING DOCUMENTATION:
- Eviction notice showing the monthly rental amount and amount necessary to prevent eviction
- Notice of delinquency showing the amount of past due rent
- Foreclosure notice from the mortgage company showing the amount that is past due
- Notice from the mortgage company showing the amount past due in mortgage payments and payment deadline to avoid foreclosure
- Court order indicating foreclosure and an amount that is necessary to prevent foreclosure and payment deadline date
- Letter from an attorney indicating the amount necessary to reinstate the mortgage or redeem the property and payment deadline date

5. Burial or funeral expenses for the employee’s parent, spouse, or dependents
SUPPORTING DOCUMENTATION:
- Documentation demonstrating the relationship must be provided (e.g. copy of death certificate; copy of federal tax return; copy of participant birth certificate )
- Statement from the funeral home showing the related costs and services
- Statement from the cemetery for burial costs

6. Repair of damage to the employee’s principal residence
REQUIREMENTS:
Expenses must be for the repair of damage caused by an event that is sudden or unexpected. (Home improvements do not qualify)
SUPPORTING DOCUMENTATION:
- Contractors estimate or bill showing the cause of damage and cost of repair and dated within the last 3 months
- Explanation of insurance benefits showing any repairs not covered by insurance

Hardship Requests require completed service provider paperwork along with supporting documentation, and must be accompanied by OMNI’s Hardship Distribution Request Form. Supporting documentation can be scanned and uploaded through the website or faxed to 585-756-5557.

Transfer:

This refers to the transfer of your 403(b) assets from a plan under a former employer to that of your current employer. Your first step should be to establish a 403(b) plan with one of your current employer’s Participating Providers. After establishing the plan, obtain any paperwork that is required for the transfer of funds and complete the online Transfer Request Form. OMNI will email the certificate of approval within 2-3 business days, which should be printed and submitted to your Service Provider with their required paperwork

Please note that a transfer is an optional transaction for employers. The ability to submit a transfer request does not guarantee that a transfer will be approved by either the former or the current employer. If a transfer is not allowed by an employer’s plan, you will be notified accordingly.

Rollover:

In the event that you are moving funds from another form of tax sheltered retirement savings account, such as a 401(k) or IRA, to your 403(b) plan, your first step will be to contact OMNI to confirm whether this transaction is allowed under your employer’s plan . If so, you should establish a 403(b) plan with one of your employers Participating Providers. After establishing your plan, obtain your receiving vendor’s rollover paperwork.

Once you have received the Service Provider paperwork, complete the online Rollover Request Form. OMNI will email the certificate of approval within 2-3 business days, which should be printed and submitted to your Service Provider with their required paperwork.

Please note OMNI’s Rollover Form is classified as the transfer of funds from a non-403(b) account into a 403(b). For transfers out of the 403(b) plan into any other type of retirement plan (such as 401(k) or IRA), please use OMNI’s Distribution Form.

Qualified Domestic Relations Order (QDRO):

A Qualified Domestic Relations Order (QDRO) is a court order necessary for the distribution of a participant’s account to a former spouse. A QDRO is commonly separate from a judgment of divorce, and provides the specifics of how the funds are to be divided.

OMNI will review the court order to ensure compliance with applicable regulatory requirements. Upon approval of the court order, OMNI will forward its findings to the distributing service provider(s) and all other parties involved. OMNI also reviews drafts of orders prior to submission to a judge for signature in an effort to facilitate a smooth transaction once the signed order is submitted to OMNI for approval. Please note the service provider(s) may require additional paperwork to complete the transaction and an original or certified copy of the court order.

Court orders may be sent via fax to OMNI’s Service Provider Team at 585-756-5557 or mailed to 1099 Jay Street, Building F, 2nd Floor, Rochester, NY 14611.

Please be advised that once OMNI has been notified of a divorce – whether completed or pending – no transactions taken on the account will be approved until we receive the signed QDRO (if former spouse has a claim) or the Judgement of Divorce and Settlement Agreement confirming that the former spouse has no claim on the account.

Exchange:

This refers to the transfer of your 403(b) assets from one 403(b) Service Provider to another of your employer’s participating providers. As with a rollover, you will want to obtain paperwork from your receiving vendor (who must be on your current employer’s list of participating vendors), to initiate this transaction.

After contacting your sending provider to obtain any paperwork that may be required, complete the online Exchange Request Form. OMNI will email the certificate of approval within 2-3 business days, which should be printed and submitted to your Service Provider with their required paperwork.

Disability:

Early 403(b) withdrawals are sometimes permissible in the event that you become permanently disabled. After completing your Service Provider’s distribution paperwork, fill out the online Disability Request Form.

OMNI will verify any necessary information with your current or former employer before authorizing your transaction and emailing you a Certificate of Approval . Typical turnaround time for this transaction is between five and eight business days. Once a certificate of approval has been issued, it should be printed and submitted to your Service Provider with any required paperwork.

Death Claim:

In the unfortunate event that you are the beneficiary of a deceased 403(b) participant, you may want to obtain a distribution from the plan in question. Start by contacting the deceased’s Service Provider to request a distribution as the beneficiary of the plan- if possible, be prepared to supply the Service Provider with a Death Certificate

After obtaining the necessary paperwork from the 403(b) Service Provider, complete the online Death Claim Form. If the Service Provider was not already supplied with the Death Certificate one must be mailed to OMNI. Please note - only the original or a certified copy of the Death Certificate will be accepted, and this document cannot be emailed or faxed. Once we confirm the participant as being deceased, we will email the beneficiary the certificate approval, which should be printed and submitted to the Service Provider with any required paperwork.

Distribution:

IRS regulations allow for any individual who is 59 1/2 years of age and/or separated from service to withdraw funds from their 403(b) plan. If you meet these criteria, your first step will be to contact your 403(b) service provider to request a distribution.

After completing your Service Provider’s distribution paperwork, fill out the online Distribution Request Form. OMNI will verify any necessary information with your current or former employer before authorizing your transaction and will email a Certificate of Approval, which should be printed and submitted to the Service Provider with any required paperwork .

Required Minimum Distribution:

The IRS requires participants to start making minimum withdrawals each year from their retirement accounts once they reach 70 ½ years of age. In order to take your first Required Minimum Distribution (RMD), reach out to your Service Provider to obtain any required paperwork, and to determine the amount that you will be required to withdrawal.

After you receive any necessary paperwork and information, complete the Required Minimum Distribution Form. OMNI will email a Certificate of Approval, which should be printed and submitted to the Service Provider with any required paperwork.

Be sure to keep the Certificate of Approval for your RMD! Since ongoing distributions must take place, your certificate does not expire. Should your Service Provider company ask for an approval in the future, it is not necessary to resubmit your request as long as you have the original Certificate of Approval.

Service Credit:

Transfer of funds from a 403(b) account to purchase service credit in a tax-qualified defined benefit governmental plan (i.e., pension plan).

To request approval for the purchase of service credit, obtain any Service Provider paperwork and fill out the Service Credit Request Form. OMNI will email the certificate of approval, which should be printed and submitted to the Service Provider directly.

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