Expert: Biff - 1/10/2004

Question
Dear Biff,
I work in a university and participate in their 403b pension plan. I have been thinking about early retirement before the age of 59 and a half which is when I can start withdrawing money from my pension plan without penalty. If I retire early, is there anyway I can withdraw money from  my pension plan and avoid the 10% penalty  and just pay ordinary income tax on the amount I withdraw.
Thanks,
Omid


Answer
Depends on the pension plan.  Is it a defined contribution or distribution plan?  Are payments distributed by the fund or by the employer?

For a 401k or 403b one solution is to rollover to an IRA.  From the IRA you can start distributions early but they have to be equal from year to year.  

The short answer is yes you can.  Talk with your CPA about the details.