- What is a cash-balance plan?
- Is a cash-balance plan better than a pension?
- Do I have to do anything to manage my plan?
- Can my employer convert a traditional pension to a cash-balance plan?
- When can I get access to the money?
- Should I take a lump-sum payout or monthly payments?
- I'm required to take a lump sum, but I want monthly income. What can I do?
- If I have a cash-balance plan, do I need to save anything extra?
Typically you need to wait until you reach retirement age to start taking money out of a cash-balance plan. However, unlike a traditional pension plan, a cash-balance plan is portable. That means that when you leave a job - whether voluntarily or not - you can take the vested portion of the money and roll it over into an IRA, just as you can with the contents of a 401(k). IRAs allow you to begin withdrawing without penalty at age 59 ½.
