Please note: The Fund portability rules outlined below apply only to employees who began participating in the Fund after January 1, 2026. If you were enrolled in the Fund before January 1, 2026, please refer to this page.
What happens to my account if I leave my employment with a YWCA?
Since you are 100% vested in your account you will have several options, depending on your account balance:
· Account balances totaling $1,000 or less: You will automatically receive a single lump-sum payment after you retire or terminate, unless you instruct us prior to the distribution to roll over the account to another employer’s plan or to an IRA.
· Account balances between $1,000 and $5,000: You can receive your account as a single lump-sum payment or rollover at any time after you retire or terminate.
· Account balances between $5,000 and $25,000: You can receive your account as an annuity, lump-sum payment, or rollover at any time after you retire or terminate.
· Account balances between $25,000 and $75,000: You can receive your account as an annuity, lump-sum payment, or rollover after you reach age 55.
· Account balances of $75,000 or greater: You can receive your account as an annuity after you reach age 55.
Can I withdraw my optional after-tax account at any time after I retire or terminate?
Yes. You may request a distribution equal to the balance of your optional employee after-tax contributions and interest credits.
Are there any special rules if I want to withdraw my after-tax account?
As per IRS guidelines, a portion of this distribution will be tax-free at the time of payment. The remainder will be taxable as earned income. Your unpaid balance will continue to accumulate interest.
How do I apply for a distribution from my account?
You may contact our Member Services team to request an options package with the necessary instructions.
Will I have to pay taxes on the money I withdraw?
Generally, the money you receive from YWCARF is subject to taxes. If you choose the lump-sum payment option, and do not roll over the proceeds of your account to an IRA or another employer’s retirement plan, the distribution will be subject to 20% federal income tax withholding. In addition, you will likely be subject to a 10% tax when you file your federal income tax return if you withdraw your money before age 55.
What if I choose to leave my account with YWCARF until a later date?
All employee accounts are 100% vested. After you terminate your employment with a YWCA you may leave your account with us until you reach age 73. It will continue to earn monthly interest credits.
If I leave my account with YWCARF how will I know what the balance is?
We will send you an annual Statement Of Account. You will generally receive it in February of the following year. It is extremely important that you keep your current address on file with us. If we can't locate you, we can't mail your statement.
Can I continue to participate in YWCARF after leaving YWCA employment?
No. YWCARF is a benefit that is only provided to active employees of YWCAs within the U.S.