³ΙΘΛΏμ²₯

USA Health Retirement

β–Ό   Qualified Birth or Adoption Distributions from Retirement Plans under the SECURE ACT

The University of South ³ΙΘΛΏμ²₯, USA HealthCare Management, LLC, and the USA Health Care Authority retirement plans have adopted provisions allowed by the SECURE Act for distributions for a β€œqualified birth or adoption of a child” subject to meeting required criteria:

  • Qualified birth or adoption distributions are limited to $5,000 per birth or adoption, may be taken within one year of the date of birth or finalization of adoption, may not include the adoption of a child of the taxpayer’s spouse, and are limited to the adoption of children who are either under age 18 or are physically or mentally incapable of self-support.

  • Qualified birth or adoption distributions are exempt from the 10% early distribution tax penalty, exempt from 20% mandatory federal tax withholding, and can be repaid to certain retirement plans and IRAs without regard to the usual 60-day time limit for rollovers.

  • Qualified birth or adoption distributions are subject to optional federal income tax withholding. The default tax withholding is 10%.

  • State income tax withholding may be required from your distribution.

  • Qualified birth or adoption distributions are not available from your TIAA Traditional Annuity within Retirement Annuity (RA), Group Retirement Annuity (GRA) and Retirement Choice (RC) contracts.

  • In the case of multiple births or adoptions, separate distribution forms must be completed for each qualifying child.

TIAA participants with questions regarding this type of withdrawal, please call 800-842-2252.

AIG participants with questions regarding this type of withdrawal, please call 800-448-2542.