When should participants expect to receive distributions from their pension plans after terminating employment?
Generally, the law requires plans to pay retirement benefits no later than the time a participant reaches normal retirement age. But, many plans, including 401(k) plans, provide for earlier payments under certain circumstances. For example, a plan’s rules may provide that participants in a 401(k) plan would receive payment of his or her benefits after terminating employment. The plan’s SPD or Summary Plan Description should set forth the plans rules for obtaining the distribution as well as the timing of distribution after termination of employment.
Generally, the law requires plans to pay retirement benefits no later than the time a participant reaches normal retirement age. But, many plans — including 401(k) plans –provide for earlier payments under certain circumstances. For example, a plan’s rules may allow participants in a 401(k) plan to receive payment of benefits after terminating employment. The plan’s Summary Plan Description (SPD) should set forth the plans rules for obtaining the distribution as well as the timing of distribution after termination of employment.
Generally, the law requires plans to pay retirement benefits no later than the time a participant reaches normal retirement age. But, many plans — including 401(k) plans –provide for earlier payments under certain circumstances. For example, a plan’s rules may allow participants in a 401(k) plan to receive payment of benefits after terminating employment. The plan’s Summary Plan Description (SPD) should set forth the plan’s rules for obtaining the distribution as well as the timing of distribution after termination of employment.
Related Questions
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- Whats the difference between companies in the Terminating Pension Plans database and companies that appear in the 5310 database?
- When should participants expect to receive distributions from their pension plans after terminating employment?
