Distributions from Your Retirement Plan
- Introduction
- What Initiates a Distribution?
- Five Dates You Should Know
- Selecting a Distribution Option
- Deciding on a Payout Option
- Annuity Form of Payout
- Advantages and Disadvantages of Taking an Annuity
- Taking a Lump-Sum Distribution: Know Your Options
- Annuity vs. Managing Your Own Retirement Assets
- Advantages and Disadvantages of a Lump-Sum Distribution
- The Roth IRA–How Does It Fit In?
- Making the Decision: Annuity or Lump-Sum?
- Taxation of Distribution Options
- Rollover into a Traditional IRA
- Advantages and Disadvantages of Rollover to a Traditional IRA
- Annuity Payouts
- Early Distributions
- Should You Defer Your Retirement Plan Distribution as Long as Possible?
- Distributions Following Death
What Initiates a Distribution?
Certain events, including retirement, will permit or trigger your retirement funds to be distributed. When one of these events occurs, you must then make your choice (if one is available) as to the distribution method to be used. Events permitting or requiring a distribution must be specified in your qualified retirement plan document. Typical distribution events are:
- Retirement on or after attaining the plan's normal retirement age
- Financial hardship
- Death
- Attainment of normal retirement age
- Disability
- Attainment of age 72 (70½ if you reached age 70 1/2 by January 1,2020) unless still employed. If you own more than 5% of the entity that sponsors the plan, you must begin taking minimum distributions at age 72 (70½ if you reached age 70 1/2 by January 1,2020), even if you continue to work.
IMPORTANT NOTE: Distributions from a traditional IRA must begin at age 72, even if you are still working.
- Other termination of employment, including early retirement
- Plan termination
Share Article:
IT IS IMPORTANT that our customers understand that products and services made available through Osaic Institutions, Inc.
Important information about procedures for opening a new account
To help the government fight the funding of Terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.
What this means to you: When you open an account, we will ask you for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
Investment products are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Insurance products offered through Osaic Institutions, Inc.
- ARE NOT A DEPOSIT
- ARE NOT FDIC-INSURED
- ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
- ARE NOT GUARANTEED BY THE BANK
- MAY GO DOWN IN VALUE
Important information about procedures for opening a new account
To help the government fight the funding of Terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.
What this means to you: When you open an account, we will ask you for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
Investment products are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Insurance products offered through Osaic Institutions, Inc.