If you leave employment, you have several choices regarding your retirement funds:
Choice 1 – Leave your money on account*
Generally, you may leave your assets in the plan administered by the Montana Public Employees’ Retirement Administration (MPERA) to grow tax deferred until you reach age 70 ½.
For the following two choices, you will need to have severed employment for at least 30 days.
Choice 2 – Direct rollover into another eligible plan
You can choose to roll funds of $200 or more into another eligible plan. Be sure to confirm that the new plan will accept your rollover.
Choice 3 – Take a distribution
If you take a distribution from your account, federal law requires us to withhold 20% of the distribution for federal income tax purposes. State tax withholding may also apply. Once you take a distribution, you also have the option of rolling it over into an IRA or a qualified employer’s plan. Amounts not rolled over within the 60 day time frame will be subject to ordinary income tax in the year received. If you are under 59 ½ years old, you may also have to pay a 10% additional income tax for early distributions. Please contact your tax professional before making a final decision.
- Non-vested members will receive a refund of their contributions plus interest.
- Vested members will receive a refund of their contributions and the employer contributions plus interest.
For withdrawal paperwork, please contact Empower Retirement (formerly Great-West Financial) at 1-800-981-2786 (449-2408 in Helena)
*By law, we are required to refund accounts with a balance of less than $1000.