What are My Options for Distributing My Balance From the Plan Upon Termination?

Generally, you have four options for handling your retirement account once you terminate employment:

1. Leave your account in your former employer's plan (if your account balance is greater than $5,000).
2. Rollover your account into your new employer's retirement plan (if allowed by your new employer’s plan).
3. Rollover your account to an Individual Retirement Account (IRA) at a qualified financial institution.
4. Cash out your account and not “rollover” your account into a new employer plan or an IRA. If you “cash out,” your account generally will be subject to applicable taxes and early withdrawal penalties.

To begin the distribution process, log into your account on the HowardSimon Retirement Portal, go to “Loans & Distributions,” and follow the step-by-step process under “Termination Distribution.”

NOTE: Please read the required Special Tax Notice Regarding Plan Payments located under the “Forms and Reports” menu. This notice discloses the tax implications for each method of distribution. We encourage you to start to take steps to process your distribution from the Plan; however, please consult your financial advisor or tax advisor about the impact of each distribution option from the Plan.

If you prefer to complete this process by paper, you can obtain a paper distribution form from your previous employer. Return the completed form to your previous employer's Human Resources department, and they will forward your request to us for processing.

If you have an outstanding loan balance, your loan becomes due and payable in full immediately. If you do not repay the entire outstanding loan balance prior to the processing of your distribution, your vested account balance will be reduced by the remaining outstanding balance of the loan and applicable taxes will be withheld where possible.

How Do I Request a Distribution After Termination?

 

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