News & Announcements
New Distribution Forms and Expedited Payment Options
JANUARY 31, 2017
For added distribution convenience and flexibility, we now offer three new participant distribution forms and two expedited payment options.
New In-Service Distribution Forms
In response to feedback from TPAs and plan sponsors, we have created new participant distribution forms for the most common in-service distributions: hardship withdrawals, RMDs and age-based in-service withdrawals (premature, age 59½ and retirement eligible).
- Hardship Withdrawal Request form (PDF)
- Required Minimum Distribution Request form (PDF)
- In-Service Distribution Request form (PDF)
Previously, participants would typically initiate an in-service distribution request by completing and signing a distribution form provided by you. The plan sponsor would then work with you to complete the American Funds Payment Instructions form, which would be submitted to American Funds for processing.
To make requesting distributions easier, the new forms can be signed by participants, eliminating the need to transpose the request from one form to another. But if it’s preferred, TPA distribution forms can continue to be used to obtain participant signatures. However, depending on the distribution type and terms of the plan, please note that participant and spousal consents and waivers may need to be obtained separately.
The Payment Instructions form (PDF) will continue to be used for permissible withdrawals and distributions related to death and divorce (QDROs).
Expedited Payment Options
We are also introducing two new options for expedited delivery of cash payments for most distribution types:
- Electronic delivery (ACH) to a bank account (within 3 business days) – A voided check or letter from the bank is required, and the participant’s name must be included in the bank registration.
- Check sent via express shipping (within 2 business days) – A $25 fee will be deducted from the check amount, and a physical address is required for delivery (no P.O. boxes).
Expedited payment options can only be requested on distribution forms; they cannot be requested online through e-Distributions.
For more information
If you have any questions about the new distribution forms or payment options, please call Retirement Plan Services at (800) 421-6019.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.