How do I request exchanges or distributions?
Fund exchanges
Participants can request exchanges by phone or online. Telephone exchanges can only be made if that option was elected on the Homestead Funds account application, although the service can be added to the Homestead Funds account later at the direction of the cooperative. If telephone exchange is not an option on the Homestead Funds account, requests can always be submitted in writing, but the written request must be signed by a cooperative authorized signer as on file with Homestead Funds.
Requesting an account distribution
Homestead Funds account distributions should be requested on the Deferred Compensation Plan Distribution Form. Please check the plan documents for distribution options. If you have questions regarding what a participant can do, contact the Homestead Advisers Deferred Compensation Team for guidance. Homestead Funds must receive the original form for processing. The distribution form must:
- Be signed by an authorized cooperative signer, as on file with Homestead Funds. The participant should not sign the form. If the participant is also an authorized signer on file with Homestead Funds, a different signer will need to sign the form.
- Be received by mail or fax. Instructions are located at the top of page 1 of the form.
Can the Homestead Funds account be transferred to an IRA or other qualified plan?
Generally this is not allowed. Please review your plan documents or contact the Homestead Advisers Deferred Compensation Team if you are unsure if this is an option for your plan type.
How is the distribution calculated with a declining balance?
The distribution is calculated by dividing the shares in each Homestead Funds fund by the number of remaining payments. This means the account will fully pay out after the number of payments you request. Also, the distribution will generally fluctuate with each payment depending on the funds in which the account is invested.
How do we receive the money?
Distributions can be sent by check or ACH to the cooperative. To request distributions by ACH, you must have cooperative bank instructions on file. Bank instructions can be added using the Deferred Compensation Account Maintenance Form.
How do we pay the participant?
If your accounting department is unsure of how to process the payment, please contact Homestead Advisers Deferred Compensation Team. They can discuss the mechanics of the distribution and tax withholding requirements.