Home  >  Financial Articles and Q&A  >  Hello I worked for GDX Automotive for 6 yrs. with pension...

Hello I worked for GDX Automotive for 6 yrs. with pension benefits can I cash out any funds now at age 47 and how.

Apr 10, 2015 by William in  |  Flag
2 Answers  |  2 Followers
Follow Question
2 votes
John Essigman Level 17

Hi William.


Every pension plan is different in how it operates and what it allows. Some plans will allow you to take a lump-sum, which can then be rolled-over into an IRA or 401(k) plan. Be aware that if you take a lump-sum and do not roll it over properly that you may be subject to the 10% early withdrawal penalty in addition to be taxed as current income. Some plans do not allow withdrawals until you have reached a certain age and within certain parameters, such as lump-sum or annuity type lifetime payouts.

Your best option is to contact someone in H/R or the benefits administrator for GDX Auto, ask them questions, and get a copy of the Plan Document.

Best wishes John Essigman

Comment   |  Flag   |  Apr 11, 2015 from Cleveland, GA

1|600 characters needed characters left
1 vote

If you are no longer employed there you can usually roll it over to an IRA or sometimes another plan, but if you want to take it in cash before you turn 59 1/2, unless you are permanently disabled or have a severe financial need you will pay fedeal and state income taxes and a 10% penalty if it does not qualify for an excpetion like medical expenses exceeding 7.5% of your adjusted gross income, buying a first home for you or your child, education expenses and other exceptions on an IRS-defined list. Another exception is taking it as part of a series of substantially level payments. You will need to contact the HR Dept at that employer to get the forms needed to get the money.

Comment   |  Flag   |  Apr 27, 2015 from Charlotte, NC

1|600 characters needed characters left