WITHDRAWALS AND DISTRIBUTIONS
01.Core Concepts
• Taxed as ordinary income to recipient • Unless Roth allowed and elected under SECURE 2.0 • May be rolled over to an IRA or other qualified plan after two years of participation • May be subject to early withdrawal penalties • 25%, rather than 10%, penalty if the withdrawal is completed within the first two years of the employee’s participation in the plan • Subject to IRA early withdrawal penalty exceptions