Distribution options

You are eligible to receive your account balance upon retirement, termination of employment, or total and permanent disability. Depending on the amount of your balance, you may be able to leave it in the plan until you reach age 73. Or you can:

• Receive it as a lump-sum cash payment.
• Make a partial withdrawal.
• Roll it over to another employer’s eligible plan or an IRA. For information on a direct rollover to a Vanguard IRA^®, call Vanguard at 800-523-1188.
• Receive it in installment payments. Installments can be taken monthly, semiannually, or annually. You can choose from one of the following payment types: declining balance, fixed dollar amount, or fixed percentage amount.

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.

Taxes: The money you take from your retirement account will be taxed as income. You may also need to pay a 10% federal penalty tax if you're under age 59½. If required by law, Vanguard will withhold some taxes for you.