DISTRIBUTIONS FROM 403(b) PLANS
01.Core Concepts
• Distributions related to employee deferral contributions can only be paid after the following: • 59½ • Death • Separation from service • Earlier of age 50 or 25 years of service for public safety officers, firefighters, corrections officers (govt.) • Disability • Hardship (as defined in Chapter 5) • SECURE 2.0 added qualified federally declared disasters, emergencies (2024), domestic abuse (2024), and payments for certified long-term care contracts (2026). • Distributions from nonelective contributions are not restricted. • Distributions from pretax contributions are taxed as ordinary income, and potentially subject to a 10% penalty. • Qualified Roth distributions are tax and penalty free.