Is it true that if I take my rollover money out of my company pension account that my employer will withhold 20%? Is there a way I can avoid that?
I want to take the money out of the company pension account and put it in an IRA instead.
Answers | 4
Typically, the 20% witholding is for taxes, and some companies will do this if you "cash out" and take direct control of your funds. This should only happen if the check gets stroked to you and you are under the age of 59-1/2.
Ask your payroll office for the latest statement of the plan (should be updated) and you may find all the answers there.