In observance of the Christmas Day federal holiday, the New York Stock Exchange and Capital Group’s U.S. offices will close early on Tuesday, December 24 and will be closed on Wednesday, December 25. On December 24, the New York Stock Exchange (NYSE) will close at 1 p.m. (ET) and our service centers will close at 2 p.m. (ET)
We can now support RecordkeeperDirect® clients who choose to offer emergency expense distributions made available under the SECURE 2.0
Act of 2022.
If plan sponsors choose to offer this optional distribution type, participants may be able to request up to a $1,000 withdrawal from their retirement account for an unforeseeable or immediate financial need related to a personal or family emergency expense. An emergency expense distribution is not subject to the federal 10% penalty for early withdrawals.
A participant who takes an emergency expense distribution is prohibited from taking another emergency distribution for three calendar years, unless the distribution is repaid, or the participant makes deferral contributions into the plan equal to or exceeding the amount of the withdrawal. Participants have the option to repay the distributions within three years.
This distribution type can now be selected in Plan manager or the Retirement Plan Specifications paperwork when initiating a new plan. Existing plans can enable this distribution type by submitting the Plan Maintenance Request form, which is available in the Forms section of RecordkeeperDirect TPA website. Participants will then be able to request this distribution type through the participant website and app.
If you have questions about emergency expense distributions, please call us at (800) 421-6019.