The NYC Deferred Compensation Plan withdrawal form, formally the Participant Distribution Guide and Form, is available at nyc.gov/deferredcomp or by calling (212) 306-7760, and it must be signed in front of a notary public before the plan will process it.1New York City Deferred Compensation Plan. New York City Deferred Compensation Plan Distribution Guide If you’ve left City service, the plan will not process a distribution until at least 45 days after your separation date. You can also skip the paper form entirely and start the request through your online account.2NYC Office of Labor Relations. Withdrawing Assets
When You Can Request a Withdrawal
The usual trigger is leaving the City payroll. Retirement, resignation, and termination all qualify, and once 45 days have passed you can request a distribution at any age.2NYC Office of Labor Relations. Withdrawing Assets Nothing forces you to take the money right away; the account can sit in the plan until required minimum distributions begin.
Still working for the City? You can take in-service withdrawals from either the 457 or the 401(k) account starting at age 59½. Qualified public safety employees get an earlier break on the pre-tax 401(k): distributions are exempt from the 10% early withdrawal penalty starting at age 50.2NYC Office of Labor Relations. Withdrawing Assets
Active employees who are 73 or older may take required minimum distributions but aren’t forced to while still on the City payroll.2NYC Office of Labor Relations. Withdrawing Assets After separation, RMDs become mandatory. Participants born between 1951 and 1959 must begin distributions by the year they turn 73; those born after 1959, by age 75.3Schneider Downs. RMD Rules for 2026
Getting and Filling Out the Form
Download the Participant Distribution Guide and Form from the plan’s website, or request one by phone at (212) 306-7760 (toll-free 888-327-3113 outside New York City).1New York City Deferred Compensation Plan. New York City Deferred Compensation Plan Distribution Guide The Client Service Center offers in-person and virtual appointments, but only by advance online booking.4Office of Labor Relations. NYC Deferred Compensation Plan
On the form you’ll enter your full legal name, Social Security number, NYC Employee ID, date of birth, and current mailing address. You then need to specify whether the withdrawal comes from the 457 plan, the 401(k) plan, or both. This is not a formality. Each plan has different penalty rules, and putting the wrong plan on the form can cause processing errors and a tax bill you weren’t expecting.
Payout Options
A full distribution empties the account and closes it. A partial lump-sum withdrawal lets you take a set dollar amount and leave the rest invested. Periodic installment payments are common at retirement, and the form asks you to pick a frequency: monthly, quarterly, semi-annual, or annual. For installments, you can elect a fixed dollar amount or a schedule calculated to satisfy required minimum distributions.5Internal Revenue Service. Retirement Topics – Required Minimum Distributions (RMDs) You can change or stop payments later, online or on paper.2NYC Office of Labor Relations. Withdrawing Assets
How You Want to Be Paid
For direct deposit to a checking account, attach a voided check. For a savings account, attach a letter on your bank’s letterhead with your name, account number, and ABA routing number, signed by a bank representative.6New York City Deferred Compensation Plan. Beneficiary Distribution Guide and Form Without one of those, the plan mails a check to the address on file.
Withholding and Rollovers
Any eligible rollover distribution paid directly to you from the 401(k) plan carries a mandatory 20% federal income tax withholding, even if you plan to redeposit the money into an IRA within 60 days.7Office of the Law Revision Counsel. 26 USC 3405 – Special Rules for Pensions, Annuities, and Certain Other Deferred Income The same 20% applies to eligible rollover distributions from the 457 plan. The form also lets you request extra federal withholding or a specific New York State withholding amount.
To skip the 20% withholding, use the direct rollover option on the form. That sends the money straight to another qualified employer plan or an IRA. You’ll need the exact name of the receiving institution, the account number, and the institution’s mailing address so the plan can make the check payable to the new custodian.8Internal Revenue Service. Rollovers of Retirement Plan and IRA Distributions
Why the 457 or 401(k) Choice Matters
The two DCP plans diverge sharply on early withdrawal penalties. Distributions from a governmental 457(b) plan are not subject to the 10% early withdrawal penalty at any age.9Internal Revenue Service. Retirement Topics – Exceptions to Tax on Early Distributions Separate from the City at 45 and you can pull your entire 457 balance without the extra 10%. You still owe ordinary income tax.
The 401(k) side does not get that treatment. A 401(k) distribution before age 59½ generally triggers the 10% additional tax on top of income tax unless a specific exception applies.10Internal Revenue Service. Notice 2024-55 – Certain Exceptions to the 10 Percent Additional Tax Under Code Section 72(t)
One catch worth flagging when you complete the form. If you rolled money from a 401(k) or traditional IRA into your 457 account earlier, those rolled-over dollars keep their original penalty status. Early distributions of rolled-in funds still get hit with the 10% penalty.9Internal Revenue Service. Retirement Topics – Exceptions to Tax on Early Distributions The plan tracks these amounts separately.
Roth (after-tax) accounts sit inside each plan and have their own qualified-distribution rules based on age 59½ and a five-year holding period; if that applies to you, review the plan’s summary guide before selecting your payout.11New York City Deferred Compensation Plan. Summary Guide of 457 and 401(k) Plan Provisions
Emergency Withdrawals While Still Employed
If you haven’t left the City and need money for a crisis, the two plans use different standards, and you’ll use a different form for each.
457 Plan Unforeseeable Emergency
The 457 plan allows a withdrawal for a “severe financial hardship” that occurred within the past 24 months.12NYC Deferred Compensation Plan. 457 Deferred Compensation Plan Unforeseeable Emergency Distribution Qualifying reasons include:
- Medical bills for you, your spouse, or dependents not covered by insurance
- Imminent foreclosure, eviction, or utility shut-off
- Repairs to your primary home from an accident or natural disaster beyond insurance coverage
- Funeral expenses for a spouse, dependent, parent, or beneficiary
- Involuntary wage loss from illness, accident, or other circumstances outside your control
- Repair or replacement of a home heating system
Buying a home and paying college tuition generally do not qualify under the 457 standard.13Internal Revenue Service. Retirement Plans FAQs Regarding Hardship Distributions The amount is limited to what you need after insurance and other resources are used up. There’s also a gatekeeper rule: if you’re eligible for a plan loan and don’t already have one outstanding, you have to take the loan first.12NYC Deferred Compensation Plan. 457 Deferred Compensation Plan Unforeseeable Emergency Distribution
The application is a notarized self-certification. Submit it with your most recent pay stub and a voided check for direct deposit. Supporting documentation isn’t required at filing, but hold onto the receipts and bills in case the IRS asks later.2NYC Office of Labor Relations. Withdrawing Assets
401(k) Plan Hardship
The 401(k) plan uses the broader IRS safe-harbor hardship list, which covers medical expenses, buying a principal residence, up to 12 months of post-secondary tuition and related costs, preventing eviction or foreclosure, funeral expenses, and certain home repairs.14Internal Revenue Service. Retirement Topics – Hardship Distributions Same notarized self-certification approach.
Notarizing and Sending the Form
The distribution form must be signed in front of a notary public, with a visible, legible seal. If you’re outside the United States, the notarization has to happen at a U.S. consulate.1New York City Deferred Compensation Plan. New York City Deferred Compensation Plan Distribution Guide Missing or unreadable notarization is a common reason forms get returned unprocessed.
Mail the completed, notarized form to:
NYC Deferred Compensation Plan
P.O. Box 93, Bowling Green Station
New York, NY 10274-009315Office of Labor Relations. DCP Forms and Downloads
The online option at nyc.gov/deferredcomp avoids mail delays.2NYC Office of Labor Relations. Withdrawing Assets Once the plan receives your request, it verifies your information against payroll and tax records, then sends a confirmation with an estimated payment date.
If You’re Withdrawing as a Beneficiary
The Participant Distribution Form is not the right paperwork for beneficiaries. A designated beneficiary must file a separate Beneficiary Distribution Form with a certified death certificate, a completed IRS Form W-9, the notarized Affidavit for Named Beneficiary, and any trust or guardianship documents that apply.6New York City Deferred Compensation Plan. Beneficiary Distribution Guide and Form The inherited distribution account has to be established by the end of the calendar year following the participant’s death, and missing that date can cause RMD complications. Changing only the tax withholding on an existing inherited account doesn’t require notarization.