Tax Advantage Accounts
Life Events FAQs
Defined Benefit Plans
If you have additional questions regarding the retirement process contact Farm Credit Foundation's Benefits Department at 1-800-892-7924.
What are my 401(k) distribution options?
Do I have online access to my 401(k) account after I retire?
Can I make changes to my 401(k) account after I retire?
What about distributions and withdrawals at age 59½?
Do I have to withdraw my money from my account when I retire?
What are the transactional fees for a total distribution, partial distribution, or installments with my 401(k) account?
When am I eligible to retire?
How can I get an estimate of my pension benefit?
What is an annuity payment?
If I take a lump sum, can I roll it over to my 401(k) account?
What are my pension payment options?
When do I receive my pension payment?
What happens to my pension if I die prior to retiring/starting the benefit? Will my spouse receive a benefit?
What happens to my sick hours when I retire?
Does my pension benefit affect or offset my Social Security benefit?
Will I be taxed on my pension benefit? If so, how much? Do I have to withhold taxes from my pension check?
Are there cost of living adjustments to pension payments? How often does my pension benefit increase?
Will I receive a pension benefit with my previous Farm Credit employer outside of Farm Credit Foundations at the same time I start my pension with my current employer?
Is there a way for me to see my pension payments online?
If I am over 65 and my spouse is under 65, can we both be covered under the retiree medical plan?
What will my medical premiums be when I retire?
What are my medical plan options when I retire? Will I be able to choose my plan?
Can I have my medical premiums deducted from my pension check?
When my under age 65 retiree medical coverage ends at age 65, can I continue my prescription drug coverage with Caremark?
If I die while still working for Farm Credit, will my family have access to medical coverage? If so, for how long?
Are either dental or vision coverage available after retirement?
What happens to my Life Insurance plans when I retire?
What happens to my Tax Advantage accounts (FSA, Health Savings Account) when I retire?
Typically, you have four options:
You can defer distribution until age 70½. At age 70½, you must begin required minimum distributions according to current IRS regulations. Based on the current IRS life expectancy tables, you must withdraw approximately 1/17th of your account balance at age 70½ if you are single and 1/27th if you are married. Each year the fraction will change based on life expectancy.
You can take your entire account balance in a lump sum. If you roll over to an IRA or another employer’s qualified plan, taxation is deferred.
You can elect fixed dollar installments. For example, you can elect $1,000/month and John Hancock Retirement Plan Services will continue to make these monthly payments until your account balance is exhausted, or until you request to change the amount or suspend the payments. Changes can be made quarterly.
You can elect variable installments (monthly, quarterly, semi-annually or annually) for up to a 20-year period. For example, if you elect quarterly installments over a 20-year period, your first payment would be 1/80th; your second payment would be 1/79th and so on. Your 80th payment would be your remaining account balance.
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You continue to have access to your account through MyLifeNow at
mylife.jhrps.com or by calling the Participant Service Center at 1-800-294-3575.
You may continue to make (daily) investment changes for your account and can make distribution elections as described in the previous question. The only thing that changes when you retire is that you can no longer make contributions to your 401(k) account.
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In-service withdrawals from your 401(k) are available at age 59½. Request the Age 59½ Withdrawal Form from John Hancock through
mylife.jhrps.com. The money is eligible to be rolled over to an IRA or taken as cash less any required tax withholding.
No, you can leave the money in your account. There are no additional fees just because you are retired.
There are no transaction fees or charges for distributions as a retired participant.
Typically, you can retire as early as age 55 with at least five years of service and begin your pension payment immediately. Please see the
Summary of Plan Provisions for the pension plan in which you participate for more information.
You can run a pension estimate(s) using the Benefit Estimate Calculator available at
mylife.jhrps.com based on any retirement age(s)/date(s) and salary/incentive assumptions of your choice. Here are specific instructions for using the Benefit Estimate Calculator:
You will need your User ID/Social Security number and your Personal Identification Number/Password to access your retirement (or 401(k) account) at
mylife.jhrps.com. If you have forgotten you password, or have not established a User ID and PIN/Password to access your accounts on
mylife.jhrps.com, click on the applicable link (“Forgot …” or “Establish …”) on the
mylife.jhrps.com login screen. If you need any assistance in accessing our account, contact a Participant Services Representative at John Hancock at 1-800-294-3575. When the voice response system prompts you to enter your SSN/UserID, say “Operator” and you will be transferred to a representative.
If a lump sum option is elected within 90 days of retiring, the money is eligible to be rolled over into your 401(k). If a lump sum option is elected after the 90 days, the money is eligible to be rolled over into an IRA.
Generally, you can elect a lump sum or annuity payments for your pension benefit. The specific forms of payment depend on the defined benefit plan in which you participate and your marital status. Please see the Summary of Plan Provisions for the defined benefit plan in which you participate for more information.
Your pension payment is made on the first of each month. Typically, pension payments are only for full months of retirement. This means that regardless of when in the month you retire your first payment is due the first business day of the following month. Your first payment may be made a couple of weeks into the first month because John Hancock runs a “true-up” calculation after receiving your actual earnings and service (including any unused sick leave hours, if applicable) based on your final pay check.
If you are covered under a "Final Average Pay formula" and depending on how long you were married, then your surviving spouse will be eligible for a lifetime monthly annuity. When the annuity begins depends on the defined benefit plan in which you participate. If you are covered under a “Cash Balance formula,” then your account balance would be payable to whomever you have designated as a beneficiary, or according to the plan default beneficiaries. Please see the Summary of Plan Provisions for the defined benefit plan in which you participate for more information.
If you are enrolled in a Defined Benefit pension plan using the Final Average Pay formula your sick hours are converted to extra years of service and become part of your pension calculation (added to your pension benefit).
Your pension benefit will not affect the amount of your Social Security benefit.
You will receive a 1099-R each year because your pension benefit is taxable. Please consult a tax advisor because states tax pension benefits differently. Your federal taxes will depend on what other income you have in retirement.
There is no provision in the defined benefit pension plan for cost of living adjustments.
You will need to contact your previous Farm Credit employer to start your pension benefit if not administered by Farm Credit Foundations.
mylife.jhrps.com, select your pension plan from the Multi-plan drop down menu then click Activity History from the list of topics from the menu list and select Distributions. Click on the Check/ACH # in blue to bring up the Transaction Detail of your payment for the month selected.
If your spouse is on your medical plan when you turn 65, then you spouse can remain in the early retiree plan with single coverage until he or she turns 65 at which time he or she transitions to Medicare and the Medicare Supplement Plan.
View retiree medical rates.
Farm Credit Foundations will request you complete an Authorization for Direct Debit form so premium payments can be deducted from your banking account on the 15th of each month while you are enrolled in the under age 65 medical plan. Medicare premiums are typically deducted from your social security payments.
You are not eligible to continue your prescription drug coverage with Caremark after you turn 65 and are on Medicare. You must enroll in a Medicare Part D Prescription Drug plan.
You can continue dental and/or vision on a month-to-month basis for up to 18 months after you retire. After the 18 months, there is no conversion or portability on either plan.