Get Distribution Election Form - Pelion Benefits

Capital gains are tax-free in most cases. Dividends received in the IRA are tax-free in most cases. Distributions taken before retirement are considered taxable income in most cases, and also assessed an early distribution penalty.

Any taxable eligible rollover distribution paid to you from an employer-sponsored retirement plan is subject to a mandatory income tax withholding of 20%, even if you intend to roll it over later.

IRAs: An IRA distribution paid to you is subject to 10% withholding unless you elect out of withholding or choose to have a different amount withheld. You can avoid withholding taxes if you choose to do a trustee-to-trustee transfer to another IRA.

If you are planning your retirement and you find yourself asking, “How can I avoid paying taxes on my IRA withdrawal when I retire?” plan ahead and open a Roth IRA instead of a traditional IRA. A traditional IRA is funded with your pre-tax dollars, and you pay taxes when you withdraw the funds.

This form is to request a participant withdrawal from your retirement account with your employer. Whether you are rolling over the funds or taking a cash payment, you will need to review the Special Tax Notice included at the end of this form.