How to Fill Out and Submit the BENCOR Distribution Request Form

The BENCOR distribution request form is handled almost entirely online through BENCOR’s participant portal at bencorplans.com. For most participants there is no paper form to print, sign, or mail. You log in, choose how you want your money paid, set your tax withholding, e-sign, and submit. Once your former employer confirms your separation from service, funds are typically issued within a few business days.

How to Submit the Request Online

BENCOR’s distribution process runs through the participant portal. The steps are short, but each one matters because the choices you make inside the request determine how your money is taxed and how fast it arrives.¹

Go to bencorplans.com and click “Participant Login.” Select your state, county, and employer from the dropdown menus, then log in. First-time users click the “+ New User” link to set up a user ID, password, and security questions.
From the Transactions menu near the top of the page, click “Request a Distribution.”
Follow the prompts to select your distribution type, enter banking information for direct deposit (or choose a check), set your federal and state tax withholding, and confirm your personal information.
Review everything, e-sign, and submit electronically.

If you cannot access the portal, call MidAmerica, BENCOR’s administrator, at 855-329-0097 for Special Pay Plan accounts or 800-430-7999 for FICA Alternative Plan accounts. Representatives are available Monday through Friday, 8:30 a.m. to 6:00 p.m. Eastern. Email is accountservices@myMidAmerica.com.

Who Can Request a Distribution

Most BENCOR participants become eligible after separating from the public employer that sponsors the plan. That covers retirement, resignation, or any other formal end to the employment relationship. Some employers impose a waiting period after separation, so if you’re unsure, check your plan document or call MidAmerica at the numbers above.

Federal tax law allows distributions in a few other situations too. If you’re still employed and have reached age 59½, some plans permit in-service withdrawals, though this depends on your employer’s plan terms. A total and permanent disability that prevents you from working qualifies you for penalty-free access under IRC Section 72(t)(2)(A)(iii).² Qualifying public safety employees who work for a state or local government, including law enforcement officers, firefighters, corrections officers, customs and border protection officers, and air traffic controllers, can take penalty-free distributions after separating from service during or after the year they turn 50.

Choosing How You Want the Money Paid

Inside the request, you’ll choose between taking the money directly or rolling it into another retirement account. This single choice has the largest financial consequence of the whole process.

Lump Sum Paid to You

If you take the money as a lump sum paid to yourself, the plan is required to withhold 20% for federal income taxes before you see a dollar, even if you plan to roll the funds over later on your own.³ You can request additional withholding above 20%, but you cannot opt out of it. State income tax withholding may also apply. The full gross amount counts as taxable income for the year you receive it.

Direct Rollover

A direct rollover sends the funds straight from BENCOR to another eligible retirement plan or IRA. No tax is withheld and no tax is triggered at the time of transfer, because the money never passes through your hands.³ You’ll need the receiving institution’s name, mailing address, and your account number there to complete this option.

Indirect Rollover Within 60 Days

If you take a lump sum and change your mind, you have 60 days from receiving the distribution to deposit the funds into another eligible retirement account. The distribution won’t be taxed if you make it in time, but you’ll need to replace the 20% that was already withheld out of your own pocket to roll over the full balance. You can claim the withheld amount back when you file your return. You’re limited to one 60-day rollover per 12-month period.

Spousal Consent If You’re Married

If you’re married and want to name someone other than your spouse as your beneficiary, federal rules require your spouse to consent in writing. BENCOR has a separate spousal consent form, and your spouse’s signature on that form must be notarized.⁴ Skipping it is one of the most common plan administration errors the IRS sees, and it can hold up your distribution. If your spouse is your intended beneficiary, no waiver is needed.

What Happens After You Submit

Your request does not go straight to payment. BENCOR needs your former employer to confirm that you’ve separated from service, or that the qualifying event you reported actually occurred. This authorization step is out of BENCOR’s hands. Some HR departments turn it around in a day or two; others take a week or more. No funds are released until that verification is complete.

Once the employer signs off, processing moves quickly. Investments are typically traded within one to two business days of approval, and distribution proceeds are issued within three to five business days after that.⁵ Direct deposits arrive faster than paper checks. You can track the status by logging back in at bencorplans.com.

Taxes and the Early Withdrawal Penalty

If you take money out before age 59½ without meeting an exception, the IRS adds a 10% penalty on top of regular income taxes.² On a $50,000 distribution, that’s an extra $5,000. Beyond disability and the public safety employee rule, several other situations avoid the penalty:

Separation from service during or after the year you turn 55 (distributions from that employer’s plan only).
Substantially equal periodic payments based on your life expectancy, continued for at least five years or until you reach 59½, whichever is longer.
Distributions to an alternate payee under a qualified domestic relations order in a divorce.⁶
Distributions up to $22,000 to individuals with economic losses from a federally declared disaster.
Distributions to beneficiaries after the participant’s death.

Form 1099-R for Your Tax Return

MidAmerica will issue you a Form 1099-R for any distribution of $10 or more during the tax year.⁷ It arrives by the end of January following the year of your distribution and reports the gross amount, taxable amount, and federal tax withheld. Box 7 contains a distribution code that tells the IRS whether your withdrawal was normal, early, a disability distribution, or a rollover. A direct rollover still generates a 1099-R, but the taxable amount should show as zero. Keep the form with your tax records either way; the IRS gets a copy and expects to see it accounted for on your return.

If the Participant Has Died

When a BENCOR participant dies, the designated beneficiary, or the surviving spouse if no other designation was made, can request a distribution of the account balance. Spousal beneficiaries generally have the most flexibility and can roll the inherited funds into their own retirement account. Non-spouse beneficiaries face tighter timelines under the SECURE Act: most must withdraw the entire inherited balance within 10 years of the participant’s death.⁸ Beneficiaries should contact MidAmerica directly to begin the claims process. A certified death certificate and additional documentation will be required.

1
BENCOR. Effortless Distribution Guide
2
Internal Revenue Service. Retirement Topics – Exceptions to Tax on Early Distributions
3
Internal Revenue Service. 401(k) Resource Guide – Plan Participants – General Distribution Rules
4
Internal Revenue Service. Fixing Common Plan Mistakes – Failure to Obtain Spousal Consent
5
BENCOR. BENCOR Distribution Request Form
6
Internal Revenue Service. Retirement Topics – QDRO – Qualified Domestic Relations Order
7
Internal Revenue Service. About Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
8
Internal Revenue Service. Retirement Topics – Required Minimum Distributions (RMDs)