If a retiree wants to defer their Sheltered Employee Retirement Plan (SERP) distribution to age 70 , what is the process?
Prior to reaching age 65, a retired participant will receive a form from Fidelity. If the retiree wants to postpone their SERP distributions beyond age 65, but before April 1 following the year in which they attain age 70 , they must fill out the form and return it to Fidelity. Otherwise, their total 401(k) account will be paid in one lump sum with a 20 percent federal tax withholding and their profit-sharing account will be transferred into the Pension Plan and distributed in the form of an individual life annuity (for an unmarried participant) or a 50 percent Joint & Survivor annuity (for a married participant).
Related Questions
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- If a retiree wants to defer their Sheltered Employee Retirement Plan (SERP) distribution to age 70 , what is the process?
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