A distribution from a qualified plan can be taken (1) because of the participant's death, (2) due to separation from the service of the employer, or (3) after the individual has attained age 59 1/2. In the case of a self-employed person, the distribution must be made because of the individual's death, or it must be made after age 59 1/2, unless the individual was previously disabled.You can take your distribution as ordinary income, or you can roll it over to a Traditional IRA. If you roll it over to a traditional IRA, you can convert it to a Roth IRA. Ordinary Income: Take the distribution as ordinary income, paying all the taxes due in the year the funds are distributed. Traditional IRA Rollover: Allows the plan participant to transfer their qualified plan monies directly to a Traditional (deductible) IRA without current tax consequence. (The tax treatment is the same as if you leave the money in your plan or roll it over to another qualified plan.) Roth IRA Conversion: Allows the plan participant to transfer their qualified plan monies directly to a traditional IRA and convert it immediately to a Roth (non-deductible) IRA, paying taxes on the converted amount.<table class='pure-table' role='grid'><tr><th class='section'>Summary</th><th scope="col">Ordinary Income</th><th scope="col">Traditional IRA Rollover</th><th scope="col">Roth IRA Rollover</th></tr><tr><td role="rowheader" scope="row">Eligible?</td><td>Yes</td><td>Yes</td><td>Yes</td></tr><tr><td role="rowheader" scope="row">Projected After-Tax Annual Income</td><td>$2,229</td><td>$4,968</td><td>$5,829</td></tr></table> <div id="chart1Container">Chart will load here</div> <script type="text/javascript"> <!-- var myChart1 = new FusionCharts( "MSColumn2D", "myChart1Id", "100%", "100%", "0", "1" ); myChart1.setXMLData("<chart showValues='1' showFCMenuItem='0' decimals='0' formatNumberScale='0' caption='Estimated Annual After-Tax Distributions' xAxisName='' numberPrefix='$' bgColor='FFFFFF' showBorder='1' borderColor='FFFFFF' borderThickness='1' canvasBgColor='ffffff' showAlternateHGridColor='0' plotGradientColor='' numberSuffix='' thousandSeparator=',' decimalSeparator='.'><categories><category label='' /></categories><dataset seriesName='Ordinary Income'><set value='2229.0' /></dataset><dataset seriesName='Traditional IRA Rollover'><set value='4968.0' /></dataset><dataset seriesName='Roth IRA Rollover'><set value='5829.0' /></dataset></chart>"); // --> </script> <table class='pure-table' role='grid'><tr><th></th><th scope="col">Ordinary Income</th><th scope="col">IRA Rollover</th><th scope="col">Roth IRA Rollover</th></tr><tr><td role="rowheader" scope="row"><b>Upon Distribution / Rollover</b></td><td></td><td></td><td></td></tr><tr><td role="rowheader" scope="row">Taxable Distribution</td><td>$5,984</td><td>$5,984</td><td>$5,984</td></tr><tr><td role="rowheader" scope="row">Federal Income Tax Withheld (20%)</td><td>$1,197</td><td>$0</td><td>$0</td></tr><tr><td role="rowheader" scope="row">Additional Federal Taxes Due</td><td>$-479</td><td>$0</td><td>$718</td></tr><tr><td role="rowheader" scope="row">State Income Taxes Due</td><td>$0</td><td>$0</td><td>$0</td></tr><tr><td role="rowheader" scope="row">Early Withdrawal Penalty (10%)</td><td>$598</td><td>$0</td><td>$0</td></tr><tr><td role="rowheader" scope="row">Net Investable Assets</td><td>$4,668</td><td>$5,984</td><td>$5,266</td></tr><tr><td></td><td></td><td></td><td></td></tr><tr><td role="rowheader" scope="row"><b>Accumulation Phase</b></td><td></td><td></td><td></td></tr><tr><td role="rowheader" scope="row">Current After-Tax Balance</td><td>$4,668</td><td>$5,984</td><td>$5,266</td></tr><tr><td role="rowheader" scope="row">Accumulation Phase Return</td><td>8.00%</td><td>8.00%</td><td>8.00%</td></tr><tr><td role="rowheader" scope="row">Accumulation Phase Combined Tax Bracket</td><td>25.00%</td><td>0.0%</td><td>0.0%</td></tr><tr><td role="rowheader" scope="row">Number of Years in Accumulation Phase</td><td>31</td><td>31</td><td>31</td></tr><tr><td role="rowheader" scope="row">Value at End of Accumulation Phase</td><td>$28,416</td><td>$65,032</td><td>$57,228</td></tr><tr><td></td><td></td><td></td><td></td></tr><tr><td role="rowheader" scope="row"><b>Distribution Phase</b></td><td></td><td></td><td></td></tr><tr><td role="rowheader" scope="row">Value When Withdrawals Begin</td><td>$28,416</td><td>$65,032</td><td>$57,228</td></tr><tr><td role="rowheader" scope="row">Distribution Phase Return</td><td>8.00%</td><td>8.00%</td><td>8.00%</td></tr><tr><td role="rowheader" scope="row">Distribution Phase Combined Tax Bracket</td><td>25.00%</td><td>25.00%</td><td>0.0%</td></tr><tr><td role="rowheader" scope="row">Number of Annual Distribution Payments</td><td>20</td><td>20</td><td>20</td></tr><tr><td role="rowheader" scope="row">Estimated Annual Payments</td><td>$2,894</td><td>$6,624</td><td>$5,829</td></tr><tr><td role="rowheader" scope="row">Estimated Taxes Due</td><td>$665</td><td>$1,656</td><td>$0</td></tr><tr><td role="rowheader" scope="row">Estimated Annual After-Tax Distributions</td><td>$2,229</td><td>$4,968</td><td>$5,829</td></tr></table>