What are the eligibility requirements for the Coronavirus Hardship Withdrawal?

To be eligible for the new Coronavirus Hardship Withdrawal, you must file an application between April 10, 2020 and June 30, 2020 and be vested in the Savings Plan or you must have been credited with at least 800 hours in the May 1, 2019 to April 30, 2020 Plan Year and must have met one of these three criteria related to Coronavirus.

  1. you received a positive diagnosis of the virus SARS-CoV-2 or Coronavirus Disease 2019 by a test approved by the Centers for Disease Control and Prevention, or
  2. your spouse or your dependent received a positive diagnosis of the virus SARS-CoV-2 or Coronavirus Disease 2019 by a test approved by the Centers for Disease Control and Prevention, or
  3. you have a financial difficulty due to SARS-CoV-2 or Coronavirus Disease 2019 resulting from:
    • being quarantined;
    • being furloughed, laid off, or having work hours reduced;
    • being unable to work due to lack of childcare;
    • a closing or reducing of hours of a business owned or operated by the participant; or
    • other factors as determined by the Secretary of Treasury.

 

How much can I withdraw?

You can withdraw up to $20,000, but you must have a minimum balance of $1,000 remaining in your account after your withdrawal.

  • Example #1- If your current Basic Account balance is $2,500, then the most you can withdraw is $1,500. The remaining balance after your withdrawal is $1,000.
  • Example #2- If your current Basic Account balance is $23,750, then the most you can withdraw is $20,000. The remaining balance after your withdrawal is $3,750.
Is there a penalty on the Coronavirus Hardship Withdrawal?

No. This withdrawal is exempt from the 10% early withdrawal penalty.

Is the Withdrawal subject to Federal Income Tax or State Taxes?

Yes. We will withhold 10% for Federal Taxes unless you elect to not have any taxes taken out. Regardless, you will receive a 1099 at the end of the year.

Depending on your state or residence you may be subject to state income taxes.

You have the option to include the income from the withdrawal when you file your federal taxes in equal parts over a three-year period. This would be handled by your accountant or tax professional.  

Do you have to repay the Coronavirus Hardship Withdrawal?

You do not need to repay the withdrawal; however, you do have an option to pay it back over three years if you choose. Please note, the Government has not supplied specific guidance on how this might impact your taxes. Again, there is no requirement to pay it back. If you’re thinking of paying back the withdrawal, please consult with your accountant or tax professional for direction.

What is my Savings Plan account balance?

You can access your account at any time by visiting retirementdirections.com or by calling the 800-374-4631 between 8am-10pm EST.

First time users:

 User ID = SS# without dashes (ex. 123456789)

Participant Prior to 4/30/2018

Password = 4 Digit Pin, Birth Month and Day (ex. 0125) 

Participant After 4/30/2018

Password = 8 Digit Pin, Birth Month, Day and Year (ex. 01251975)

Notice the two sets of different default passwords depending on when you had your first contribution.

How soon will I receive the withdrawal?

If your Application is approved, you should receive the check via regular mail within 7-10 business days from the Application submission. Unfortunately, we cannot process direct deposits for the Hardship Withdrawals.

Can I take a Hardship withdrawal from my Annuity Account?

No. The Philadelphia Carpenters Savings Plan is a Defined Contribution Plan; specifically, a Profit-Sharing Plan, where hardship withdrawals are allowed under IRS regulations.

The Philadelphia Carpenters Pension & Annuity Fund is a Defined Benefit Plan; specifically, a Money Purchase Plan, which do not allow for hardship withdrawals under IRS regulations.

I’m married, does my Spouse need to sign the application?

Yes. When completing the application, you will need to verify your marital status. If applicable, your Spouse will need to sign the application. Any incorrect information or applications received without the proper signatures will be denied.

I recently did a Savings Hardship withdrawal within the last 3 years, can I still take a withdrawal for a Coronavirus Hardship?

Yes.  This is a one-time distribution approved by The Board of Trustees between April 10, 2020 and June 30, 2020 that does not look back at previous withdrawals from the Savings Plan and will not impact your eligibility for future withdrawals from the Savings Plan.  For Hardship withdrawals after June 30, 2020, the Benefit Fund will only look back at withdrawals outside of the April 10, 2020 through June 30, 2020 period to determine eligibility under the 3-year rule.  For more information on the 3-year rule, contact the Benefit Fund’s Retirement department.

How do I apply for the Coronavirus Hardship Distribution?

The easiest and fastest way to apply is by clicking here to use the electronic application.