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Distributions

When you're part of your employer's retirement plan, your primary focus is usually on how much to contribute and how to invest your money. The idea is to grow your retirement savings over your working years, building a nest egg to support your income during retirement. It's all about securing your financial future.

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Are you eligible for a distribution?

There are quite a few situations where you might find yourself in a position to take some money out of your retirement plan. It's not just a one-size-fits-all deal. 

Now, when it comes to taking money out of your retirement plan, this is referred to as taking a distribution. But it's not as simple as just deciding to withdraw money whenever you want. The Internal Revenue Service (IRS) has set rules in place to govern when you can take distributions and how they are taxed. These rules are in place because retirement plans come with great tax advantages, and they're meant to encourage long-term savings for your retirement.

 

Before you even think about taking a distribution, there are a few things to consider. It's a good idea to consult with a financial professional and your tax advisor. They can help you understand the rules and determine a distribution strategy that makes the most sense for your individual situation. It's important to plan to make sure you're making the most of your retirement savings while staying within the IRS guidelines.

Here some of the scenarios where you can tap into your retirement savings:

  • You change employers or retire
  • You reach age 59½
  • You experience a financial hardship
  • You wish to pay expenses related to the birth or adoption of a child
  • You reach age 72

Log in to your account and review your retirement plan communications for more information as not all of these options may be available in your plan.

Provided content is for overview and informational purposes only and is not intended as tax, legal, fiduciary, or investment advice.