Withdrawal as Parsonage (Age 59 1/2 or Older )

Withdrawals

401(k) Withdrawals can be requested in the form of Parsonage (Non-Taxable Housing Allowance for Ministers). This type of withdrawal involves coordination between the Reliant Office and The Principal Financial Group. To pursue this option, you must be at least age 59 1/2 and you must be eligible and approved by Reliant to receive Parsonage. (Other restrictions may apply.) The Employee will need to fill out a special Distribution Form (Reliant will provide this Form upon request) as well as a Parsonage Request Form (also to be requested from and provided by Reliant).  The employee does not have to be retired from employment to start receiving this benefit, as long as the employee is at least age 59 1/2. However, if you are still employed by Reliant and currently receiving a monthly parsonage from Reliant, you cannot also take parsonage withdraws from your 401(k) Plan. 

 If you exit employment with Reliant and have at least $5,000 invested in the 401(k) Plan with Principal Financial Group, and you would like to be able to withdraw parsonage at a later date from your 401(k) retirement account, there are a few key guidelines to note:

• Anyone exiting employment with Reliant with $5,000 or more invested in Reliant's Retirement 401(k) Plan with Principal has the option to leave their current 401(k) funds in Reliant's 401(k) plan.  The funds will remain invested in the Reliant 401(k) Plan until the former employee requests withdrawals at retirement age or at age 59 1/2 or older.
• Leaving funds in Reliant's Retirement 401(k) Plan with Principal requires no action by the former employee.  This is the default choice for 401(k) participants exiting employment with Reliant ,who have more than $5,000 invested in the 401(k) Plan.
• IMPORTANT - Do NOT convert your 401(k) funds to a personal IRA with Principal or with another investment company if you want to pursue the parsonage withdrawal option.  Taking the funds out of Reliant's 401(k) Plan and into an personal IRA will forever forfeit your ability to withdraw funds as parsonage at a later date.
• Former Reliant employees who are later employed in another field of work (non-ministerial) do not have to retire while employed in a ministry role to be eligible to receive parsonage withdrawals later in life.  As long as the former Reliant employee was a Commissioned/Ordained minister while making contributions to the Reliant 401(k) Plan, the former employee will be eligible for parsonage withdrawals from Reliant's 401(k) Plan.