Emergency Expense Withdrawals

Beginning April 25th, 2024, under the parameters of the Secure Act 2.0, the plan will permit domestic abuse withdrawals of the participant's vested account for victims of domestic abuse. 

An emergency expense withdrawal may not exceed the lesser of 1) $10,000, or 2) 50% of the individual's vested account balance in the Plan.  In other words, the maximum withdrawal is $10,000 for those that qualify.

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A participant may take only one domestic abuse withdrawal during a one-year period beginning on any date of which the participant is a victim of domestic abuse by a spouse or domestic partner. The term “domestic abuse” is defined by the SECURE 2.0 Act as “physical, psychological, sexual, emotional, or economic abuse, including efforts to control, isolate, humiliate, or intimidate the victim, or to undermine the victim’s ability to reason independently, including by means of abuse of the victim’s child or another family member living in the household.” Participants self-certify their eligibility for domestic abuse withdrawals.

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Domestic abuse withdrawals can be repaid, but they are not required to be. Withdrawals should be reported on your annual income tax return as part of your total income.

• Mandatory 20% withholding does not apply and the 10% penalty tax for early withdrawal is waived for domestic abuse withdrawals.

• 10% federal withholding applies unless the participant elects to opt out.

• Domestic abuse withdrawals are not eligible for rollover.

If you have a need to take a domestic abuse withdrawal after 04/25/2024, you can initiate the withdrawal by contacting Principal Participant Services at 1-800-547-7754 between the hours of 7am and 9pm CST.

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