Retiring Soon

If you're close to retirement, you need to seriously consider a distribution strategy for a comfortable retirement. Find a financial advisor near you to develop the best distribution and investment strategies to meet your needs. As you consider what to do with the funds in your employer-sponsored retirement plan, you must first decide if you will need the money now or in the near future.

How Your Age Affects Your Distributions
Depending on your age and distribution strategy, taxes or exemptions may apply.

Between Age 55 and 59 1/2
If you receive a distribution from your company's retirement plan (not an IRA), you may be eligible to receive all or part of the funds without the federal 10% penalty.

Born Before Jan.1, 1936
You may qualify to be taxed at a lower than normal rate under the special averaging rules.

Younger Than 59 1/2
If you roll over to an IRA, you may be able to take withdrawals from your IRA without penalty. Your withdrawals must be substantially equal payments and maintained for at least 5 years, or until you reach age 59 1/2, whichever comes later.

Age 59 1/2 or Older
While your distribution will be taxed under the normal rules, you will not be subject to penalties for early withdrawal.