If benefits aren distributed by age 70 , must a participant who has terminated service begin benefit payments or will the participant receive a total distribution of their account(s)?
A participant is required to begin distributions from the SERP Plan by April 1 following the year in which they attain age 70 if they terminate service. Before turning 70 , a participant who has terminated service can roll over benefits to an IRA, but is required to begin a minimum distribution amount each year no later than April 1 following the year in which they attain age 70-. If a participant who has terminated service does not initiate a distribution from the Plan, their total 401(k) account will be paid in one lump sum with 20 percent in federal taxes withheld 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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