403(b)(7) Account

A 403(b)(7) plan withdrawal requires a triggering event such as separation or retirement from service.

You may request a withdrawal by completing our 403(b)(7) Plan Distribution Form. In some cases, this may require documentation from your previous employer. The form also includes a special tax notice that provides you with information about your options and tax consequences of taking a withdrawal. Please contact a Janus Henderson Representative at 800.525.1093 to obtain this form or answer any questions related to your 403(b)(7) account.

Generally, yes. You must begin to receive distributions from your 403(b)(7) by April 1 of the year that follows the later of:

• The calendar year in which you reach age 72 by 12/31/2022 or age 73 by 12/31/2023, or
• The calendar year in which you retire from employment with the employer maintaining the plan

This is called a Required Minimum Distribution (RMD).

Failing to take your RMD could trigger a 25% (or 10% if corrected in a timely manner) excess accumulation penalty from the IRS on the amount of RMD not distributed.

A unique feature of the 403(b)(7) account is the age at which you can start taking distributions without penalties. For many retirement plans, penalty free distributions can start to occur once the individual reaches age 59½. However, with the 403(b)(7) plan, if you retire from service at the age of 55 or older, you can start to make withdrawals without penalty. This feature could be helpful if you need to tap the assets before age 59½.