SECURE 2.0 Updates

Typically, participants who are still working face a 10% penalty for withdrawing funds from their account before the age of 59.5. Under Secure 2.0, that penalty is waived if the participant is:

• Diagnosed with a terminal illness
  • To qualify, the participant must provide sufficient evidence of the terminal illness as required by the IRS.
  • Participants have the option to repay the withdrawal over three years to their RPB retirement account and can work with their tax advisor to recover applicable income taxes on the money they repay.

• Impacted by a qualified federally declared disaster
  • The participant can withdraw a maximum of $22,000 without paying the 10% early withdrawal penalty, according to the IRS distribution rules.
  • The distribution may be repaid in part or in full within three years, if you choose.
  • The distribution may be included equally in income over three years starting in the year of receipt, unless you choose to report the entire amount as income in the year of receipt.
  • If the participant repays some or all of the distribution, they may file amended federal income tax returns to claim a refund of the tax attributable to the amount of the distribution that was included in income for the applicable years.
  • To qualify, the participant's primary residence must be located in the disaster area, they must have sustained economic loss because of the disaster, and the disaster must have occurred after January 26, 2021.
  • Visit NetBenefits, to process this early withdrawal option penalty-free.

• A victim of domestic abuse
  • The participant may request a withdrawal of up to $10,300 or 50% of their account balance, whichever is less. Participants have the option to repay the withdrawal over three years to their RPB retirement account and can work with their tax advisor to recover applicable income taxes on the money they repay.
  • To qualify, the participant can self-certify their status as a victim of domestic abuse within one year of the date they experienced the abuse.
  • Visit NetBenefits, to process this early withdrawal option penalty-free.