How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Asad Rahman Your Own Question
Asad Rahman
Asad Rahman, Lawyer
Category: Employment Law
Satisfied Customers: 2156
Experience:  Practicing Attorney with 10 years experience
Type Your Employment Law Question Here...
Asad Rahman is online now
A new question is answered every 9 seconds

I worked at Caloric plant 5 years. They took out pension

Customer Question

I worked at Caloric plant for over 5 years. They took out pension they closed the Florence plant about 10 years ago but I was laid off in 1995. Why can't I draw my pension at 62years old instead of 66 years.
Submitted: 1 year ago.
Category: Employment Law
Expert:  Asad Rahman replied 1 year ago.

You must consider your options carefully when withdrawing money early from your pension. You may get hit with a 10-percent tax penalty from any early withdrawal before the age of 59 1/2. The only exceptions to this penalty are if you have been laid off or you leave your job at the age of 55. Another factor is based on the type of pension plan. Cash or deferred arrangement plans, such as a 401(k) or a profit-sharing pension, allow for early withdrawal. Defined benefit plans that give you a specified monthly benefit at retirement do not allow withdrawals under any circumstances. Always contact your employer or plan administrator about your options.

Expert:  Asad Rahman replied 1 year ago.

If you are over age 67 when you begin making withdrawals from your pension plan, you'll avoid the early withdrawal penalty. This penalty applies only if you withdraw money from your pension before you reach age 59 1/2. If you trigger the early withdrawal penalty, you will owe a penalty tax equal to 10 percent of the amount of your withdrawal. This tax applies in addition to any income tax you may owe on the payments you receive.

Expert:  Asad Rahman replied 1 year ago.

Thank you for signing up for our service. If you have any further questions, let us know. If you can "accept" the answer, then I can close it out and if you are inclined, a positive rating would be appreciated.