Frequently Asked Questions


When will I receive my check?

The normal distribution processing time is 10-15 business days. Inaccurate or incomplete information will delay processing time.

What are the tax consequences for a distribution?

A rollover into another qualified plan or an IRA does not have any tax consequences. Federal law requires that 20% of the distribution amount be withdrawn from the gross Distribution for Federal with - holding. You may be subject to an additional 10% penalty for early withdraw if you are under age 59 1/ 2, when you file your 1040 for the distribution year.

 1. I had a check payable to a rollover institution, I have changed my mind, what do I do?

 2. For a Freedom Acct issued check-send check back, voided with letter of instruction. As long as the check is received back the fee is $25.00 to reissue. If they cannot produce the check the fee is $55.00

**If Reliastar issues a check, they will only reissue to another rollover institution. Reliastar does not reissue as a lump sum or vice versa. The fee is $50.00. The same procedure as above applies. The voided ck and letter of instruction is sent to BCG. We then send to Reliastar.

When do I get my 1099-R (participant) and where is it mailed?

Prior to February 1st, the year following the distribution. The 1099-R is mailed to the plan Trustee/Sponsor to be forwarded to the participant.

When will we receive our 1099 package (plan sponsor)? What is in it? What do I do w/ it?

Prior to February 1st the year following the distribution. The package will contain the participant 1099-R forms, Form 945 (only if a lump sum was issued) and Form 1096 for the company. The 1096 & Form 945 should be mailed per the instruction sheet. The 1099-R should be mailed to the participant’s home.

Can I take a distribution if I am still employed?

Yes, if you meet the following conditions:

 1. You are 59 ½ and the plan document allows for “in-service” distributions
 2. You are of “normal retirement age” as defined in the plan document
 3. You apply for and qualify for a loan or hardship withdraw
 4. You are 70 ½, you can take a Required Minimum Distribution (RMD)

How do I apply for one of the above?

# 1, 2 & 4 , use the PDR and complete accordingly. # 3 use the appropriate loan or hardship request form.

Where was the check mailed?

All checks mailed to Trustee unless other instructions are on file signed for by the Trustee