One Florida Bank Enrollment PDF - 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
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Immediately after your employment terminates
Normal Retirement Age - Even if you are still working
Hardship (limited accounts)
In-service – after reaching age 59 ½,
From the Rollover Contribution Account at any time
Qualified birth or adoption distribution
Death-Your balance will be paid to your designated beneficiary(ies)
Generally, distributions must begin after you reach age 72 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.
What if I leave One Florida Bank?
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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