An In-Service Distribution is only available to AP-MPPP participants who have reached age 50 or older. Please be aware that there will be tax implications for taking a distribution from your retirement plan prior to attaining age 59 ½. In order to understand the full spectrum of tax consequences associated with a premature distribution, carefully read the Special Tax Notice Regarding Plan Payments (Exhibit C) of the In-Service Distribution Packet prior to completing the distribution request.
Most importantly, if you are under age 59 ½ and do not rollover assets distributed from a retirement plan, the full amount will be considered earned income in the year it was distributed and the IRS will apply an additional 10% penalty to the full amount of your early withdrawal. Participants are strongly encouraged to contact the Plan Administrator and/or consult a tax professional for guidance prior to taking a distribution from AP-MPPP.
The benefits and consequences associated with your distribution options are unique, and your decision can have long-lasting implications. Please review the distribution checklist to help make an informed decision and contact your local pension office at apdretire@innovestinc.com.