Distributions - Overview
Comprehensive Plan premiums paid by MMBB Financial Services on behalf of disabled members can only be converted to an annuity. No partial or complete settlements, loans or withdrawals on funds contributed by MMBB are permitted.
You have several options with regard to a distribution upon Retirement, Death, Disability, or Employment Termination.
- Annuity Payment: When you retire, you can convert your Comprehensive Plan investment account into an annuity that provides lifetime income.
Note: If you have 5 or more years of service, you are required to annuitize 50% of your Comprehensive Plan investment account.
- Lump-Sum Payment: When you retire, you can withdraw up to 50% of your Comprehensive Plan investment account after annuitizing . To request a lump-sum payment, contact MMBB.
If you choose to have the account distributed to you directly, certain IRS tax regulations apply. You may defer paying taxes at the time you take a withdrawal by directly rolling over your eligible withdrawal to another qualified plan or IRA.
- Deferring Payment: If any portion of your account remains after you purchase your annuity, you may leave the remainder invested with MMBB.
- Installments: If retired, you may elect to establish an installment program. Installments may be processed monthly, quarterly, or on an annual basis