Bolling Forest - Web Book - 2025 - Flipbook - Page 6
ACCESS TO YOUR MONEY
Can I take money out of my account?
The federal government established qualified retirement plans to help you
prepare for retirement. For that reason, there are certain restrictions regarding
withdrawals and distributions. Remember to consider the tax and long-term
savings implications of taking money out of your account, especially those
prior to age 59 ½. You may be able to withdraw money in these events:
• Separation from Service
• Retirement - Note that Roth accounts must be held for a least five years
prior to a retirement distribution.
• In-Service withdrawal - allowed after attaining age 59 1/2
• Permanent disability
PLAN HIGHLIGHTS
• Death-Your balance will be paid to your designated beneficiary(ies)
Generally, distributions must begin after you reach age 73 if you have
terminated employment.
Can I borrow money from my account?
Yes, under certain circumstances, you may borrow from your account. The loan
amount is usually limited to a maximum of 50% of your vested account balance,
up to a maximum of $50,000. Although you are borrowing from and repaying
yourself with interest, consider the long-term impact of borrowing against your
future.
You are allowed to have two outstanding loans at anytime. The minimum loan
amount is $1,000.
What if I leave my Employer?
You generally have several options:
You can roll over your balance into an IRA or a new employer Plan, if allowed,
and keep the money tax deferred.
If your vested balance exceeds $7,000, you can leave your money in the Plan tax
deferred.
You may receive the vested balance in cash. You will be responsible for
paying taxes and other penalties that may apply. Note that 20% of your
taxable distribution will be withheld for income tax purposes.
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