Payment Options
Overview
At the time you turn age 59 ½ years, or 6 months after you stop working in covered employment and, following receipt of your application for benefits, your account balance will be paid in a single-sum payment as soon as administratively possible.
If your account balance is more than $5,000, you can elect to receive your money in periodic payments such as annual, quarterly or monthly installments over a period not exceeding 20 years.
When considering how frequent you want distributions from your account, keep in mind the distribution amount may be subject to mandatory 20% federal income tax withholding and applicable state income tax withholding. You may be able to defer income taxes by electing to have your distribution paid directly to an eligible IRA or other tax qualified retirement plan.