Voluntary Retirement Savings Plan SECURE Act Provision
October 11, 2021
Effective January 1, 2022, participants will be able to take a withdrawal from their Voluntary Retirement Savings Plan (VRSP) to pay for the qualified birth or adoption of a child, as permitted by the Setting Every Community Up for Retirement Enhancement (SECURE) Act.
Some details of this provision:
Withdraw up to $5,000 per parent, penalty-free, from your VRSP
10% early withdrawal penalty will not apply
State income tax withholding may be required
Withdrawal must occur within one-year of birth date or date legal adoption is finalized
Withdrawal not available from employer contributions
Withdrawal cannot be used for adopting spouse’s child
You can repay back into your VRSP
This withdrawal provision only applies to the VRSP. Other University retirement plans do not allow.
To find out more, or to request a withdrawal, call TIAA (800-842-2252) or Vanguard (800-523-1188). You can also log in to your VRSP account at each vendor.