Citi Benefits Handbook
Hardship Withdrawals
From Non-Roth Accounts
If you have a financial hardship as defined by the IRS, you may request a "hardship withdrawal." If your withdrawal request is approved, the amount withdrawn is taken from your accounts in the following order:
  • After-Tax Contribution Account;
  • Rollover Account;
  • Profit Sharing Account;
  • Before-Tax Contribution Account (excluding earnings credited after December 31, 1988);
  • Company Contribution Account; and
  • One-Time Shearson Transition Contribution Account.
The maximum available is 100% of the accounts listed above. The minimum withdrawal amount is $500 or the entire balance in these sources, if less.
Note: Company Fixed Contribution Accounts, Company Transition Contribution Accounts, and Company Matching Contribution Accounts (i.e., Company Matching Contributions made for 2008 and later years) are not available for hardship withdrawals.
The IRS defines financial hardship as an "immediate and heavy financial need" that you cannot meet through other means. The hardship withdrawal cannot be for more than the amount of the immediate and heavy financial need, although it can include additional amounts you may need to pay applicable taxes and penalties. You are required to have received all other withdrawals, distributions and loans available under the Plan before you are eligible for a hardship withdrawal. According to IRS rules, a financial hardship includes:
  • Purchase of your primary residence (excluding mortgage payments);
  • Funds to prevent your eviction from or foreclosure on the mortgage of your primary residence;
  • Post-secondary tuition expenses and related educational fees, including room and board, for you, your spouse, or your dependents for the next 12 months only;
  • Unreimbursed medical expenses for you, your spouse, or your dependents;
  • Funeral or burial expenses associated with the death of an immediate family member (including your parents, your spouse and children); and
  • Repairs to your home as a result of a natural disaster not covered by insurance.
Other circumstances that may qualify as a financial hardship include:
  • The next 12 months of primary or secondary education expenses at an accredited vocational, technical, or academic institution including tuition and related fees and expenses, for you, your spouse, or your dependents;
  • Legal expenses or court costs for you;
  • Wage garnishment;
  • Income tax due for prior tax years;
  • Car repossession;
  • Expenses associated with visiting or caring for an immediate family member (including grandparents and grandchildren) because of serious illness;
  • Transforming your home to make it handicapped accessible;
  • Moving expenses in connection with the purchase of a principal residence; or
  • Expenses necessary to maintain the habitability of a principal residence.
You will be required to document the existence of a financial hardship and the extent of the hardship. The existence of a hardship, and the amount that can be withdrawn, will be determined by the Plan Administrator in accordance with IRS and Plan rules. The Plan Administrator's decision will be final and binding.
The following rules apply to financial hardships:
  • You must indicate that your hardship cannot be relieved through other means — such as insurance reimbursement, liquidation of assets, loans, or other distributions from the Plan or any other plan maintained by the Company, or bank loans — or by discontinuing your contributions to the Plan.
  • You may not contribute to the Plan or any other plan sponsored by the Company, its subsidiaries, or its affiliates for six months following a hardship withdrawal. This restriction does not apply to your contributions to any health or welfare plans such as medical, dental, or life insurance coverage. When the suspension period is over, you will be automatically enrolled in the Plan and 6% of your eligible pay will be withheld from your pay each pay period (beginning no later than the second payroll period immediately following the last day of the suspension period) and contributed to the Plan as a traditional Before-Tax Contribution.
  • If you do not want to contribute to the Plan, or if you wish to contribute more or less than 6% of your pay, you either must opt out or elect a different percentage at some point during the six month suspension period described above. You may opt out or elect a different percentage by contacting the Plan or visiting the Plan's website through TotalComp@Citi at www.totalcomponline.com. If you become automatically enrolled, you may increase or decrease your future contributions at any time by contacting the Plan. If you become automatically enrolled in the Plan and do not change your contribution percentage, your contribution rate will be increased automatically by 1% each year over a nine-year period to a maximum of 15%. At 15%, the automatic annual increases to your contribution rate will stop.
  • You may not apply for a Plan loan for six months following a hardship withdrawal.
  • If you have a balance in the Citigroup Common Stock Fund, you must elect to receive your dividends in cash. If you have not made a prior election, your election will be updated at the time your approved hardship is processed.
  • You may not repay any amount withdrawn as a hardship withdrawal.
From Roth Accounts
If you have a financial hardship as defined by the IRS, you may request a "hardship withdrawal" from your Roth Accounts. The hardship requirements applied are the same as those applied to hardship withdrawals from non-Roth Accounts. If your withdrawal request is approved, the amount withdrawn is taken from your accounts in the following order:
  • Roth Rollover Account; and
  • Roth Contribution Account.
The maximum available is 100% of the accounts listed above. The minimum withdrawal amount is $500 or the entire balance in these sources, if less.