What Is A Distribution From A Retirement Plan?

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   David G. Pipes, CLU®, RICP®

   Business Development Officer, T.D. McNeil Insurance Services, Fresno, California

   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.

   Answered on May 19, 2014

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