2618 DISTRIBUTION OF BENEFITS

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2618

2618.1 Participants may not withdraw funds from their account, except in the case of:

1. (a) Separation from the District;
2. (b) Death;
3. (c) Attainment of age seventy and one-half (70½); or

(d) A severe financial hardship, pursuant to § 2618.3.

2618.2 Roth deferrals and associated earnings can be withdrawn tax free if:

(a) Five (5) years have passed since January 1 of the year of the participant's first Roth deferrals; and

(b) The participant is at least fifty-nine and one-half (59½) years old (or disabled or deceased).

2618.3 Participants may request a distribution due to a severe financial hardship by applying for an emergency withdrawal using the "District of Columbia 457(b) Deferred Compensation Plan, Application for Unforeseeable Emergency Withdrawal Form," available at http://www.dcretire.com.

2618.4 Participants may elect the time when distributions under the 457(b) Plan will begin by designating the month and year the first distribution is to be made. The first distribution date that may be elected by the participant shall be the earlier of:

(a) Thirty-one (31) days after separation from the District, or

(b) The date the participant attains age seventy and a half (70½).

2618.5 Notwithstanding § 2618.4, a distribution of a participant's account must be made no later than the first (1st) day of April following the calendar year in which the participant separates from the District or attains age seventy and a half (70½).

2618.6 Participants eligible to receive a distribution may choose from the following payment options:

(a) Lump sum payment;

(b) Installment payments for a designated period, including monthly, quarterly, semi-annual, and annual installment payments;

(c) Annuity payments; or

(d) Direct rollover to another employer-sponsored, eligible retirement plan or to a traditional IRA.

2618.7 If a participant dies before distribution of his or her account, then the beneficiary must submit a death certificate proving the death of the participant before distribution of the participant's account pursuant to § 2618.6.

SOURCE: Final Rulemaking published at 67 DCR 4743 (May 1, 2020).