Clarence C. of Arkansas asks, "What payment options do I have when I retire?”
Pension Evaluators & QDROS Of Troyan, Inc Associates Group answers, "Upon retiring, you will have the same options, in regards to distribution, as those who have terminated employment. You will remain responsible for all federal (and state) income taxes owed on amounts taken from your account, however you will only be taxed on the amount withdrawn within a given year, as opposed to the account balance in its entirety (unless you remove the entire balance at once). In most cases, distributions pursuant to retirement are not subject to the 10% early withdrawal penalty, as you will have reached the normal retirement age determined by your Plan.
Additional information can be acquired by contacting your financial advisor, or referring to your Summary Plan Description.
When you retire, you have essentially the same distribution options as other participants who have terminated employment. In most cases, though, your distribution will not be subject to the 10% early withdrawal penalty as you will have reached age 59½.
You will be responsible for all federal (and state) income taxes owed on any distributions taken from your retirement account. You will only be taxed on the amount withdrawn in any given year, not the entire account balance (unless you take a distribution of the entire balance). If you have more questions regarding distributions at retirement, please with a financial advisor or CPA."
Pension Evaluators & QDROS Of Troyan, Inc Associates Group QDRO Consulting offers expert QDRO outsourcing services to divorce attorneys and mediators, as well as retirement plan administrators.
Divorce attorneys/mediators – You can rely on Pension Evaluators & QDROS Of Troyan, Inc Associates Group to draft QDRO documents correctly and promptly for your clients, and obtain pre-approval by the plan administrator. We will be pleased to work with you and your law office, or directly with your clients (after the divorce is finalized by your offices) in the QDRO process.
QDRO Pre-Approval Guaranteed!
Just click here to begin the process to begin the application process forms on this site (or direct your client to do so), along with prepayment of our fee, either by check or credit card (online). For more information, call to speak with our QDRO experts at 800-221-0706 and reference the state for your Divorce matter for discussions.