Guest ERead Posted March 26, 1999 Posted March 26, 1999 I hope you can help me. I will be leaving my employment within the next 6 months. I was wondering if there is a way, that I can put a lock on my retirement fund. What I want to do, is withdraw some money to pay for expenses now, and keep the rest of the moeny and have it be inaccesible to me until I reach reitrement age. That is, put a lock on it. I called my company, but they said there wasn't a way to do that. Another point, which I didn't know about, and I think it might apply to me. Can I receive distributions because I have recently become disabled? How do I go about obtaining this? I was diagnosed as legally blind in Nov., 1998. My plan, was to use some of the money to pay off my debts and then use the rest to attend school. I want to obtain training in a different field and return to work until I hit retirement age.
KIP KRAUS Posted March 26, 1999 Posted March 26, 1999 Help For Gayle: My advise is to ask the compnay for a current Summary Plan Description, and/or a copy of the most recent plan document. Your answers should be in there. If you are talking about a defined benefit pension plan, your first oprion of a partial distribution is probably unrealistic. I never heard of a DB plan making partial distributions. Most DB plans I have been envolved with have had disability benefit provisions, but I'm not sure if it is required. If you cannot read the SPD and plan document, have someone read the applicable plan provisions to your,then ask your questions if you need to. [Note: This message has been edited by ERead]
david rigby Posted March 27, 1999 Posted March 27, 1999 I'm confused. If the amount is over 3500/5000, then the sponsor cannot distribute it without the permission of the participant. If this is a DB plan, then I agree with above message: there does not seem to be a way to do a partial distribution, unless the plan had/has EE contributions. Also, be wary of rollovers and excise tax requirements (Sorry I cannot remember if the 10% early distribution excise tax is waived for disability. Even so, need to check to see how disability is defined/determined.) I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now