Distributions from Your 401(k) at Retirement
- Introduction
- Lump-Sum Distribution
- Annuity Distribution
- Rollover to a Traditional IRA
- The Roth IRA - How Does It Fit In?
- Rollover to another Retirement Plan
- Mandatory Withdrawals
Lump-Sum Distribution
A lump-sum distribution is just what it sounds like—you take a distribution of all the money in your 401(k) plan in one lump sum. You will qualify to take a lump-sum distribution if you meet the following requirements:
- The distribution is payable on account of death, attainment of age 59½, or separation from service.
- Your entire plan balance is paid out.
- The distribution is made all in one taxable year of the recipient.
You will have two choices if you go this route.
- You can roll over all or part of it into a traditional IRA or other retirement plan and defer paying income tax; or
- You can pay income tax on the money you keep.
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Investment and insurance products and services are offered through Osaic Institutions, INC. Member FINRA/SIPC. TMB Financial Solutions is a trade name of The Milford Bank. Osaic and The Milford Bank are not affiliated.
| NOT A DEPOSIT | NOT FDIC INSURED | NOT GUARANTEED BY THE BANK |
| NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY | MAY GO DOWN IN VALUE | |
