Nys Deferred Comp Withdrawal Age In Pennsylvania
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FAQ
How is DCP Roth different from a Roth IRA? The main difference is Roth IRA has income limits to participate. DCP Roth does not. DCP Roth also has higher maximum annual contribution limits than a Roth IRA.
Dipping into a 401(k) or 403(b) before age 59 ½ usually results in a 10% penalty.
About Your Deferred Compensation Plan. Your "deferred comp plan" offers a simple, flexible way for you to save for retirement. With its powerful pretax savings features, investment options and planning resources, you can work toward replacing your working income in retirement — for life.
Please know that your assets that started and grew in your regular Plan account or were rolled over from another 457 deferred compensation plan are not eligible for a withdrawal until you leave public service, become age 59 1/2, or are needed for an unforeseeable emergency withdrawal.
If the distribution code shows as a "1" or "2" for an early withdrawal, then the amount will transfer to the PA-40 and be included in gross income on the state return.
Upon severance from City service, or upon reaching age 59½, participants can begin receiving distributions at any time by either accessing their account online or submitting a Distribution Form to the Plan's Administrative Office. Participants can change or stop distributions at any time.
Distribution of earnings from the Roth 457 and 401(k) Plan before age 59½ or for a period shorter than five taxable years are subject to all applicable income taxes (Roth 401(k) distribution is also subject to penalties).