ACC Money Purchase Plan Questions and Answers

Go to ACC Money Purchase Plan page for general information about the program.

Who must participate in this plan? 

This plan is mandatory by federal law for ALL part-time or adjunct faculty and hourly employees except qualified part-time ACC students.

Who is exempt from contributing? 

  1. Employees currently contributing to TRS or to an ORP.
  2. Employees receiving benefits from either TRS or ORP.
  3. Part-time ACC students who work for the College, and:
    1. Regularly attends classes, and
    2. Enrolled in at least
      • Six credit hours for either the Fall or Spring semesters, or
      • Three credit hours for the Summer semester

What if I am in a retirement program with a private company or the State of Texas through ERS?

You are still required to be in ACCMPP.

If I quit, can I get my money back?

Yes. If you permanently terminate employment with ACC, you may complete a Distribution Election form requesting a refund. This form is available online and in the Benefits Department. Submit this form directly to the Merkley, Newman & McLaws, Inc. by email, fax or mail.

When will I actually get the refund?

Refunds are made 90 days after the close of the month in which you receive your final paycheck, or later at the participant’s direction.

Is there a penalty for taking my money out of the plan before age 59 1/2?

 A 10% penalty tax may apply on some or all of your account balance upon distribution on employer contributions and interest earnings will apply. To avoid a penalty you may rollover your account to another qualified retirement account.

Will I owe taxes on the refund? 

You may have already paid taxes on part of your account. Contributions made before January 1, 2002 were made on an after-tax basis so, some or all of your account has not been taxed. Therefore, at least part of the refund will be taxable income for the calendar year in which you receive your refund. You will receive a 1099R form which details the taxable portion of your refund.

What happens to the 1.5% the college contributed for me?

 You will receive the college’s contribution (1.5%) and your contributions (6.0%), along with any investment gain or loss, when you request a distribution.

Can I leave my money in the plan if I quit?

 If you have less than $5,000, you must request a lump sum distribution or rollover your account to another tax qualified plan such as an IRA.  If you have an account balance of less than $5,000 and do not contribute for eighteen months, your account will be automatically distributed either as a lump sum payment sent to your last known address if you have less than $1,000 in your account, or as a rollover to an IRA account with HAND Benefits & Trust Co.  If you have more than $5,000, you can leave your funds in the plan until you decide to request a distribution or annuity.

Where can I get more information about this plan?

Please contact Merkley, Newman & McLaws Inc., the plan administrator by email at or phone at 800-580-2176 ext 1 for assistance with the ACCMPP.

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