Basically, there are four choices: 1) rolling the money into an IRA, 2) rolling it into a new 401(k) plan, 3) leaving it in the existing plan, or 4) taking the money and paying the tax.

ERISA does not require pension and profit-sharing plans to provide for lump-sum distributions. Lump-sum distributions are possible only if the plan specifically provides for them and only if you meet the plan's eligibility requirements. See similar questions...

annuity preserves the tax shelter for funds not yet paid out as annuity income, continuing to grow tax-free to fund future payouts. Or consider an annuity with a "refund feature", that guarantees a fixed sum to your heirs should you die earlier than expected. See similar questions...

Your Partial Lump Sum distribution is subject to federal and state income tax withholding. As a general guideline, if you choose a distribution payable to you, approximately 4 percent of the Partial Lump Sum payment is non-taxable because the Partial Lump Sum payment is made up of both pre tax contributions and post tax contributions (already taxed). See similar questions...

Participants in a 401(k) plan generally have a decent number of different investment options, nearly all cases a menu of mutual funds. These funds usually include a money market, bond funds of varying maturities (short, intermediate, long term), company stock, mutual fund, US Series EE Savings Bonds, and others. See similar questions...

Amended 12/30/99] The lump-sum leave period is the annual leave projected forward for all workdays employees would have worked if they had remained in Federal service, including holidays (even though they are typically nonworkdays) until the expiration of the their accumulated and accrued annual leave. See similar questions...

Federal law does not require that plans provide for lump sum distributions. Many plans, however, do contain provisions allowing for lump sum distributions. Consult the plan documents or Summary Plan Description to determine your eligibility for a lump sum distribution. If you are in a defined benefit plan (a plan in which you receive a benefit based on a formula established in the plan) your benefits usually begin at retirement age. See similar questions...

Answer: Yes. There are several distribution options available to you. For more information, contact your ING Aetna Financial Services representative. See similar questions...

Generally, a 10% penalty applies to funds withdrawn before age 59 ½ plus current income tax on the distributed portion. Under certain circumstances, the 10% penalty can be avoided if distributions follow the IRS guidelines found in rule 72t. Contact one of our rollover specialists for more info. Click here. See similar questions...

We calculate a lump-sum payment by multiplying the number of hours of accumulated and accrued leave by the employee's applicable hourly rate of pay, including the types of pay listed under Q6 below. See similar questions...

No. Both active and retired participants may only receive benefit payments from this Plan for unreimbursed covered medical expenses as allowed under IRS regulations. See similar questions...

PPS will work out payment plans to accommodate budgets with restrictions. However, all packages must be paid in full prior to departure. See similar questions...

A 401(k) plan is a defined contribution plan that is a cash or deferred arrangement. You can elect to defer receiving a portion of your salary which is instead contributed on your behalf, before taxes, to the 401(k) plan. Sometimes the employer may match your contributions. There are special rules governing the operation of a 401(k) plan. For example, there is a dollar limit on the amount you may elect to defer each year. The dollar limit is $11,000. See similar questions...

A lump-sum payment for accumulated and accrued annual leave is required when employees separate or retire from the Federal service; die; or transfer to positions not covered by subchapter I of chapter 63 of title 5, United States Code (Governmentwide leave statutes), and their accumulated and accrued annual leave cannot be transferred. See similar questions...

The AD-581, Lump-Sum Leave or Compensatory Time Payments, should be sent to the HRD Southern Services Branch, Retirements and Benefits Staff, to avoid delays in processing. See similar questions...

Federal taxes are withheld--depending on the employee's selection--at either the 28% Federal flat tax rate or at the NFC database tax rate for that individual. Employees should select the withholding rate to apply. This is particularly true for employees who retire in mid-year and will fall into a lower tax bracket due to reduced income in the year of separation. Note: Taxes on lump-sum annual leave payments are withheld only on pay subject to Federal tax withholding. See similar questions...

employee who is reemployed in the Federal service prior to the end of the period covered by the lump-sum payment must refund an amount equal to the payment covering the period between the date of reemployment and the expiration of the lump-sum period. (See Q4.) The refund is based on the pay used to compute the lump-sum payment, e.g. See similar questions...

Yes. If an annuitant is reemployed in the Federal Government prior to the expiration of the lump-sum period in a temporary appointment of less than 90 days, he or she must refund an amount equal to the pay covering the period between the date of reemployment and the expiration of the lump-sum period. See similar questions...

The proposed and final regulations are on the OPM Homepage (www.opm.gov) under archived Federal Register notices dated July 29, 1997 (62 FR 40475) and July 8, 1999 (64 FR 36763), respectively. This Q&A will be posted on the HRD Homepage at: See similar questions...