Withdrawals

Generally, you may withdraw your vested account balance if you meet one of the following requirements:

• Attaining age 59½
• Retirement or separation from service
• Your death or total disability
• Hardship

Your plan was established to encourage long-term savings, so withdrawals prior to age 59½ might be subject to federal restrictions and a 10% federal tax penalty.

The following are events upon which you may withdraw vested amounts without incurring a 10% federal tax penalty:

• Attaining age 59½
• Separation from service on or after age 55
• Your death or total disability
• Taking substantially equal payments after separation from service for a
  period of five years or attainment of age 59½, whichever is later

In addition, you must begin taking distributions once you reach age 70½ or you retire, whichever is later.  

Hardship distributions

In certain instances, your plan may allow for hardship distributions. Contact our Client Care Center at 1.877.375.2424 for more details.

Distribution options

VALIC offers many distribution options, allowing you to tailor your benefits to meet your individual needs. Your withdrawal options include:

• Transferring or rolling over your vested account balance to another
  tax-advantaged plan that accepts rollovers
• Receiving systematic or partial withdrawals
• Taking a lump-sum distribution
• Deferring distributions until a later date (but no later than attainment 
  of age 70½), allowing your account to continue to grow tax deferred

Generally, income taxes must be paid on all amounts you withdraw from your plan. A 10% federal tax penalty may apply to distributions taken prior to attainment of age 59½.

Consult your financial advisor for more specific information.

Loans

Tax-free loans make it possible for you to access your account without permanently reducing your account balance. Defaulted loan amounts (not repaid on time) will be taxed as ordinary income and may be subject to a 10% federal tax penalty if you are under age 59½.