Distributions

You’ve contributed to your JRB account for many years. Now you’re ready to retire. The JRB makes it easy to transition from the “accumulation” phase, where you built financial resources, to the “distribution” phase, where you use these funds to create a financially secure retirement. Most participants wait until they retire to begin withdrawing their savings.

When you are considering taking withdrawals from your JRB account, the first step is to set up a Complimentary Financial Consultation. Call us at 888-JRB-FREE (888-572-3733). We will work with you to understand your financial needs and goals in retirement. Based on your objectives, we will work with you to develop a distribution strategy that caters to you.


Distribution Options 

While most participants wait until they retire to take distributions, you can also take withdrawals when:

  • You reach age 59½.
  • You become disabled or die.
  • You face a severe financial hardship (as defined by tax law).
  • You stop working for a Conservative Movement employer.

Taxes

Distributions from a retirement plan are generally taxed as ordinary income. Withdrawals prior to age 59 ½ may be subject to an early withdrawal penalty.

To provide maximum flexibility, the JRB Plan allows you to take distributions monthly, quarterly, annually or on any schedule you choose.

Required Minimum Distributions 

A Required Minimum Distribution (RMD) is the least amount you must withdraw from your tax-deferred retirement account each year. Federal law requires most JRB participants to begin taking an RMD the year in which they reach age 73. Participants may be exempt from the RMD if they are still working within the Conservative Movement.

Parsonage For Retired Clergy 

Special tax rules apply to housing for retired clergy. Only assets invested in a church plan, such as the JRB Retirement Plan, allow retired clergy to claim a parsonage allowance. Under this benefit, distributions that cover a housing allowance are tax-free. Learn More.

The IRS has issued a Private Letter Ruling that the JRB Retirement Plan can provide the parsonage allowance to retired clergy.


Loans

You can borrow from your JRB retirement account. Loans give you access to your account without taking distributions and incurring taxes. Because you are borrowing from your retirement account, the loan payments – both principal and interest – are repaid to your JRB retirement account. If you need short-term access to the funds in your retirement account, consider taking a loan instead of a distribution. Learn More.

October 2024