 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
457 Plan
401(a) Plan
Receiving Your Benefits
You may receive a distribution from your 401(a) account if you:
-
Leave county employment;
-
Reach age 591/2;
-
Have a “financial hardship,” or
-
Die
Payment Options
In order to receive your benefits, you must request payment from your account by completing a Distribution Request Form and submitting it to Great-West. You may choose any one of the following payment options. You are allowed to change your payment option two times over the life of your plan without incurring a charge.
Lump-Sum Payment
Your entire benefit is distributed in one payment. If your account balance is $5,000 or less, your benefits will be paid automatically as a lump sum.
Partial Lump-Sum Payments
You can elect to receive a partial lump-sum payment, and the balance of your account will be paid out in installments over a period of time that you select. If you die before receiving all of your payments, the remaining payments will be made to your designated beneficiary.
Periodic Payments
The balance of your account will be paid out in installments over a period of time that you select. If you die before receiving all of your installment payments, the remaining payments will be made to your designated beneficiary.
Annuity Payments
You can elect to receive regular annuity payments, which can be made on a monthly, quarterly or annual basis. You can choose to have these payments made to you over your lifetime or to a beneficiary after your death. If you choose to have payments made to you and your beneficiary, the payments you receive will be less than if you had elected to have the payments made only to you. The money in your 401(a) account will be transferred to the insurance company that will be responsible for sending your annuity checks.
Transfers
Money in your CERF 401(a) account can be rolled into another eligible 401(a) plan or to a separate account deemed to be an IRA after you leave county employment.
Death Benefit
If you die and there is money in your account at the time of your death, the remaining account balance will be paid to your beneficiary upon receipt of a Death Benefit Claim Form by Great-West. If you have not designated a beneficiary, payment will be made to your spouse. If you do not have a spouse, payment will be made to your estate.
Income Taxes
Generally, ordinary income taxes will apply to your withdrawals. When a withdrawal is made, 20% will be withheld automatically for federal income taxes. And, if you withdraw money before age 59 1/2, you may be subject to an additional 10% federal tax penalty. You should talk with an independent tax advisor before making a withdrawal to determine the amount of ordinary income taxes you will be required to pay and whether early withdrawal penalties will apply.
| Please allow 6-8 weeks from last date of service for delivery of funds |
401(a) Plan
Investing Your Money
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |