Distribution Options for Pension and Profit-Sharing Plans: An

1.The distribution options for pension plans are early termination, normal retirement, Qualified Joint & Survivor Annuity (QJSA), & qualified pre-retirement survivor annuity (QPSA). 2.The distribution options for profit-sharing plans are that you can annuitize the value of the profit-sharing plan, or rollover, or you can do a lump sum distribution at ordinary income. 3.Rollovers are a transfer of a balance of an account into another tax advantaged acc or an IRA of some sort.You can continue the deferral of taxes where if they could take the funds, they would have to pay income tax on everything. 4.If a participant has an adjusted basis in a qualified retirement plan, the circumstances that come with that are: if the participant made after-tax contributions to a contributory qualified plan, or if they were taxed on those premiums for life insurance held in the plan. 5.Three options for lump-sum distributions from a qualified plan are 10-year forward averaging, pre-1974 capital gain treatment, and net-unrealized appreciation. 6.Qualified plan loans are from qualified retirement plans.Limits associated with these accounts are for a new loan, the lesser of 50k subtracting the highest outstanding loan balance in prior 12 months. 7.ERISA prohibits participants assets from being alienated in favor of third parties.The exemption is if the alienation is in the direction of a QDRO.A judge or state agency has to create the rights of a third party to receive benefits from a qualified plan of some sort. 8.There is a 10% penalty for early withdrawals. 9.Minimum distributions have to begin once the owner turns 70 ½.