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.