DCP emergency withdrawals: what to know

If you have a Washington state Deferred Compensation Program (DCP) account and experience an unforeseeable emergency, you may be able to withdraw funds while still working. These withdrawals are allowed only in specific hardship situations and are processed by the DRS record keeper, Voya Financial. You may use DCP funds for an emergency only if you can demonstrate that you don’t have enough money in other accounts to cover the cost.

What’s an unforeseeable emergency?

Unforeseeable emergencies as defined by the IRS generally include serious illness or accidents, loss of property due to casualty, funeral expenses for a spouse or dependent, or imminent foreclosure or eviction from a primary residence.

Not all financial hardships qualify. For example, credit card debt is not considered an unforeseeable emergency, even if the card was used to pay for medical bills. Other expenses that do not qualify include buying a home, college tuition, student loans, child support and taxes.

How to apply

You can request an emergency withdrawal online or by phone:

• Online: Log in to your DCP account, select Loans & Withdrawals, then Request a Withdrawal.
• By phone: Call Voya Financial at 888-327-5596.

Voya will explain the next steps and what documentation is required, such as bills, invoices, or estimates. Personal statements alone aren’t sufficient.

If your request is denied, you’ll receive a letter with instructions on how to request a review by DRS.

Age 59 ½ or older withdrawals 

If you’re 59½ or older, you can withdraw money from your DCP account while still working for any reason, not just emergencies. To complete this withdrawal online, log in to your DCP account, select Loans & Withdrawals, then Request a Withdrawal and choose the withdrawal type. Or call the DRS record keeper, Voya Financial at 888-327-5596.

Summary  

There are specific rules for taking money from your DCP account while you’re still working. Emergency withdrawals are limited to IRS-defined hardships and require documentation showing you don’t have other ways to pay the expense. Find out more about DCP withdrawals.