RLF Enrollment - Web Book - Ready - 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:
PLAN HIGHLIGHTS
• Separation from Service
• Retirement - Note that Roth accounts must be held for a least five years
prior to a retirement distribution.
• Hardship Distribution - subject to IRS Safe Harbor Guidelines; deferral
accounts only
• In-Service withdrawal - age 59 1/2
• 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?
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. The
minimum loan amount is $1,000 and the maximum number of loans
outstanding is 1 and there is a $125.00 processing fee.
What if I leave Rogers, Lovelock & Fritz, Inc.?
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 $5,000, 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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