If you meet the Rule of 70, you may withdraw up to 60% of the Faculty Retirement Plan in a lump sum. The lump sum withdrawal is a one time option.

The following are distribution options for a 60% lump sum withdrawal:

• You may rollover the lump sum distribution to a personal IRA account without any tax consequences.
• You may keep the 60% lump sum distribution.  The money you withdraw is subject to federal tax withholding and a 10% penalty if you are under age 59 ½ years of age.

In order to receive the 60% lump sum distribution, you must call the retirement company you are using for the faculty retirement plan and request a 403(b) distribution form. Complete the form, and send it to Benefits Administration for approval of the withdrawal.

If you do the 60% lump sum withdrawal, the remaining 40% of the Faculty Retirement Plan employer contributions is meant to be taken in the form of a monthly lifetime annuity at the time you retire or at some future date.  If you do not annuitize the 40% by the time you are 70 years of age, you will be required by law to take an annual minimum distribution which the retirement company will calculate for you.

If you do not choose to receive the 60% lump sum distribution, you also have the have the option of taking 100% of the account in the form of a monthly lifetime annuity. Contact the retirement company direct when you are ready to start the annuity so that they can calculate the benefit for you.

If you contribute to the Supplemental Retirement Plan 403(b), the money you have contributed can be withdrawn however you wish. Options include:

1. You may rollover the entire account to an IRA (There are no tax consequences on a rollover to an IRA).
2. You may annuitize the entire account (monthly payments for your lifetime).
3. You may withdraw funds as you need them. Funds that are withdrawn are subject to federal tax withholding and a 10% penalty if you are under 59 ½ years of age.