What happens if I withdraw my Pension Plan No. 5 account prior to reaching retirement age?
Once you qualify, if you take an early direct distribution prior to retirement, your distribution will be taxable and be subject to 10% tax penalty and automatic federal tax withholding of 20%. To avoid paying federal income taxes, you may request a direct rollover of your account to a qualified individual retirement account (IRA) of your choice. If you are still working in the electrical industry, your only payment option is a direct rollover to an IRA.
