Settlements
You contribute for years to a retirement plan. Then what? How will you and your spouse benefit? Consider the following types of settlements available to retirees:
OPTION ONE: Life Long Income
1. Single Life Annuity
2. Single Life Annuity with ten-year guaranty*
3. Joint Life Annuity
4. Joint Life Annuity with ten-year guaranty*
5. Joint Life Annuity with fifteen-year guaranty*
(the following apply to all 5 options)
- Can be paid to ordained participants as tax-free housing
- Can be paid with no tax withheld
- Cannot outlive your payment—joint agreements protect your spouse for his or her life too
- Annuity may increase when earnings exceed 5%
- Annuity base cannot be attacked by creditors, nursing homes, or the state
OPTION TWO: Set Monthly Sums
1. Sixty-Month Level Pay Plan
- Your balance is amortized evenly over a 60-month period assuming a set rate.
- Can be used as a housing allowance up to the amount of your actual expenses.
2. You determine the level of monthly income you need*
- A way to provide monthly housing allowance.
- Monthly payment is deducted from the balance of your account each month.
- When your account is exhausted, payments cease.
OPTION THREE: Lump Sum
1. As a direct payment to you
- Caution: Any tax-defered funds paid directly to you are subject to a 20% withholding by the Internal Revenue Service.
2. As a direct rollover to another tax deferred plan or IRA
- Caution: Distributions from an IRA may not be designated as housing allowance.
* All settlements must take into account federal guidelines on minimum distributions.
For your Settlement Options Contact the Business Manager