Distribution options

You are eligible to receive your entire account balance in a lump sum upon retirement, termination of employment, or total and permanent disability.

At the time you are eligible for a distribution, you may do any of the following:

• Leave your money in the Plan.
• Receive your savings as a lump-sum cash payment less applicable taxes.
• Directly roll over your savings to an IRA or another eligible plan. For information on opening an IRA, call Vanguard.

Distributions must be for the entire account balance; however, you can take a portion of your account balance in cash and roll over the rest to an IRA or another employer’s eligible plan.

If you die, your beneficiary is eligible to receive your account balance in a lump sum. Please refer to your Thrift Plan Guide for more information.

Whether you keep your money where it is, move it to an IRA, or move it to another employer’s plan depends on your situation and preferences. Some things to consider are available investments and services, fees and expenses, and protection from creditors. Also consider withdrawal penalties, required distributions, and the tax effects of moving company stock to an IRA. There are other factors too. Weigh the pros and cons before you make your decision.

Whenever you invest, there's a chance you could lose the money.

Taxes: Taking money from your retirement account can affect how much you’ll have to pay in taxes. You’ll owe taxes on pre-tax money. You won’t owe taxes on Roth earnings as long as you are age 59½ or older and it’s been at least five years since your first Roth contribution. If required by law, Vanguard will withhold some taxes for you. You may need to pay a 10% federal penalty tax if you take money out early.