Qualified Birth or Adoption Distributions

Citi Benefits Handbook

You can take a "qualified birth or adoption distribution" (as defined by the IRS) of up to $5,000 for the birth or legal adoption of your child. The following rules apply to such distributions:

The distribution must be made during the one-year period following the birth or legal adoption of your child; and

The adopted child must be either under age 18 or physically or mentally incapable of self-support and may not be your spouse's child.

A qualified birth or adoption distribution is not subject to the 10% tax penalty that generally applies to distributions taken before you attain age 59-1/2. You may later recontribute all or a portion of the distributed amount to the Plan if you are eligible to make rollover contributions to the Plan at that time. The amount you recontribute will be treated as a direct rollover to the Plan from another qualified plan.

You may repay a qualified birth or adoption distribution within three years of receiving it. Please note that distributions received on or before December 29, 2022, must be repaid no later than December 31, 2025.

For more information about qualified birth or adoption distributions, please contact the Citi Benefits Center as described under "How to Contact the Plan" for more information.