Retiree 457 RSVP Information
Important Notes
Below are important notes concerning the management of your 457 RSVP account after retirement:
- Investment Accounts - Your investment funds must continue to be reviewed and managed just as they were before you retired.
- Begin Payments - If you have not started receiving scheduled payments yet, you may choose one of the available payment options voluntarily until you reach age 701/2, at which point mandatory payment must begin.
- Loans - You may acquire a loan from your RSVP account as long as you: 1) currently have no outstanding loan and 2) you are not currently receiving RSVP payments.
- Penalties - No Penalties for early withdrawal.
- Withholding Tax - The Federal Government mandates that a 20% withholding tax be held on payments when the amount will cause the payout not to last 10 years or more.
Payment Options
You must select one of the following options upon termination of employment (including retirement):
1) Schedule periodic payment (ex., monthly)
2) Defer decision on payment option no later than age 70 1/2
3) Roll over funds to another qualified Retirement Plan, Traditional IRA, or Roth IRA.
4) Receive a lump-sum payout
For a more detailed explanation of these options read document RSVP/Supplement Share/Drop Options at Retirement (PDF).
- No withdrawal is allowed until termination of employment
To request an RSVP Payout Estimate please contact the Retirement Office
(to request an estimate of what your monthly payments would be with the options available)
Loans
Please read this if you are thinking about a loan: Loans Can Be Costly
NOTE: If you have any questions about how to borrow from your 457 RSVP account or wish to request a loan, you may call a Prudential Customer Service Representative at 1-800-833-5761, Monday through Friday, 8:00 a.m. to 8:00 p.m., Eastern Time.
- Rules regarding loans from your RSVP account include:
- Only one outstanding loan is allowed at one time
- You canot be currently receiving RSVP payments
- Minimum loan amount is $1,000
- An Application fee of $75 is charged for each loan application
- An Annual Processing Fee of $25 is charged
- The Interest Rate is equal to Prime plus 1%
- Coupon payments
Loan Disclosure Statement (PDF)
IRS Tax/Penalties
Please be aware of the following IRS rules concerning your RSVP account:
1) Any withdrawals not rolled over to an IRA or another qualified Retirement Plan arrangement are subject to federal income tax at the investor's personal federal tax rate. State and local taxes may also be due on funds withdrawn
2) A 20% mandatory withholding for federal income tax is automatically deducted from withdrawal payments paid directly to you (with certain limited exceptions)
Forms & Publications
Beneficiary Designation Form (PDF)
Direct Deposit 457 RSVP Form (PDF)
W4P Withholding Form (PDF)
RSVP Termination Distribution Form (PDF)
Payout Options at Retirement for 457 RSVP, 175/185 Supplemental Share, and DROP (PDF)