What Is A Distribution From A Retirement Plan?

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May 19, 2014

David Pipes

Any time that you take money out of a retirement plan, it is considered a distribution. Depending upon the tax status of the plan, a distribution will usually trigger a tax event. Although the taxation issue is complex you need to understand that when you withdraw money from your retirement plan, even if it is a guaranteed monthly income, it is likely that taxes are going to be due on some portion of the distribution. The only exception is a plan that has been organized under “Roth” legislation.

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