Bear in mind that income taxes are payable upon withdrawal.
Corebridge Retirement Services offers many distribution options, allowing you to tailor your benefits to meet your individual needs. Depending on your employer’s plan provisions, your withdrawal options include:
- Transferring or rolling over your vested account balance to another tax-advantaged plan that accepts rollovers
- Receiving systematic withdrawals
- Taking a lump-sum distribution
- Choosing one of the many annuity options available
- Required Minimum Distribution (RMD) withdrawals
Generally, income taxes must be paid on all amounts you withdraw from your plan. A 10% federal tax penalty for early withdrawal may apply to distributions taken prior to attainment of age 59½ from accounts other than those in the 457(b) plan.
Qualified distributions from a Roth account are tax-free. Generally, a qualified Roth distribution is a distribution that:
- is made five tax years or more following the date the first Roth contribution was made to the plan and
- is after attainment of age 59½, death, or disability.
Loans
Tax-free loans make it possible for you to access your account without permanently reducing your account balance. Defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal tax penalty if you are under age 59½. The tax penalty does not apply to 457(b) plan accounts. Loans are available on employee elective deferrals only.