To request a withdrawal, download a Distribution Request Form from www.bencorplans.com. Additional information about income taxes and rollovers is included with the form. Are my funds taxable and are there any penalties when I withdraw my funds? Income taxes are imposed for the year of withdrawal.
Subsequently, what is bencor?
BENCOR stands as a leading designer and provider of Special Pay Plans and FICA Alternative Plans. BENCOR has saved hundreds of millions of tax dollars for both our employer clients and employee participants through our IRS-approved plans. …
Beside above, what is FICA alternative?
A FICA Alternative Plan is a type of 3121 retirement plan for your seasonal, part-time, and temporary employees that replaces Social Security. Employers avoid the matching 6.2% Social Security contribution, replacing it with an impactful benefit for employees.
Can I withdraw FICA?
Employees can withdraw money from a FICA alternative plan after leaving a job. Withdrawals are subject to federal income taxes. Distributions can also be made starting at age 59 1/2, or if a worker becomes disabled. The IRS may charge a 10 percent penalty for withdrawals made before 59 1/2.
What is FICA retirement plan?
FICA, the Federal Insurance Contributions Act, refers to the taxes that largely fund Social Security retirement, disability, survivors, spousal and children’s benefits. FICA taxes also provide a chunk of Medicare’s budget. Most workers have FICA taxes withheld directly from their paychecks.
What is a 403b special pay plan?
A 403(b) Special Pay Plan allows school districts to manage the costs associated with employees who leave the district with unused sick and vacation time to cash in, or employees who are eligible for an early-retirement option.
Do you pay FICA on 457 withdrawals?
You can withdraw your money from 457 before age 59½ without a 10% penalty, unlike a 401(k), but you will owe taxes on any withdrawal.
Is FICA a 401k?
401(k) contributions are subject to FICA taxes. This means you’ll see your 401(k) contributions reported in Box 3 (Social Security Wages) and Box 5 (Medicare Wages) of your W-2.
What is a 401 a FICA alternative plan?
The BENCOR 401(a) FICA Alternative Plan (Plan) is a qualified retirement plan under Federal tax law that covers part-time, seasonal and temporary employees of the University who are not covered by the Florida Retirement System. … You continue to pay Medicare taxes on your wages.