Your immediate options for your money*

You can choose any one of the following options. If you don’t make a choice, your balance will remain in the plan until you request a final distribution. Any earnings will continue to accumulate tax-deferred. The IRS requires that you begin taking distributions when you reach age 73.

• Directly roll over your savings. By rolling over your plan balance to an IRA or another employer’s eligible plan, you can keep your money tax-deferred. When you choose a Vanguard IRA® for your rollover, you can invest in funds currently offered by your plan as well as many other funds. You can roll over a portion of your plan money to an IRA or employer’s eligible plan and choose another option for the remaining balance.
• Take your savings in cash as a lump sum. This choice has significant tax implications. Distributions of plan assets not previously taxed are generally subject to ordinary income taxes and, if you are under age 59½, usually a 10% federal penalty tax. The IRS requires that 20% of your distribution be withheld for taxes, though your actual tax liability on the distribution may be more or less than 20%. You may choose to take a portion of your plan money in cash and choose another option for the remaining balance.
• Take your savings in cash in regular installment payments. You can receive your savings in monthly, quarterly, semiannual, or annual installments based on your life expectancy.