Expert: Shirley McAllister, CPP, PHR - 4/10/2009

Question
I left the carpenters union for Missouri and wanted to know if I can cash out my pension.

Answer
This would depend on multiple factors.

(a) How your pension plan is written. Some plans are written that you must be a certain age to draw your pension or cash it out.

(b) Depending on your company and your plan you may be vested or you may only be partially vested. In some plans you must work a certain number of years to be totally vested in the plan.

(c) If you are allowed to cash out your pension you may have to pay a penalty for early withdrawal and income taxes on the amount withdrawn depending on whether the money is pretax money or if it has already been taxed. Most pension plans are pre taxed and are taxed upson withdrawal.

Regardless it all depends on how the plan is written so you need to obtain a copy of the plan description so you know how it is written.

You can obtain it from whomever holds your pension plan or from the Human Resource Director at your company.

If it is throught the capenter's Union than you need to contact them for a summary of the plan.

Shirley