Forms of Payment from Fidelity
You should contact Fidelity for a distribution form. Fidelity’s counselors will provide you with information that may help you decide which distribution option best meets your financial needs.
You may elect to receive a lump-sum distribution from Fidelity at the time of your retirement.
Installment Withdrawal Program
As an alternative to a lump-sum distribution, you may elect to maintain your account balances with Fidelity and receive installment withdrawals until you have exhausted your account balances. You may designate the amount and the frequency of these withdrawals.
You may also roll over the account balances in the funds available through Fidelity into an individual retirement account (IRA) or another plan you participate in that accepts rollovers, provided you meet federal requirements. If you wish, you may use the proceeds of your account to purchase an annuity through TIAA or another insurance company. You may wish to consult with your financial advisor before selecting this option.
In-Plan Roth Conversion
You may elect to convert all or a portion of your Supplemental Retirement and Savings Plan Account (other than your Roth Contribution Account) to a Roth Contribution Account as an In-Plan Roth Conversion. This conversion actually occurs within the Supplemental Retirement and Savings Plan. You do not receive a payment from the Supplemental Retirement and Savings Plan. The full amount of any conversions to a Roth 403(b) processed in a calendar year will be considered taxable income in that calendar year.
A key benefit of a Roth is the potential for federally tax-free earnings and withdrawals. Converting to a Roth 403(b) can be beneficial if you expect your tax rate to increase in the future, because you pay taxes on the money you convert now. You are advised to consult a tax advisor to better understand these requirements.
You may take a distribution from your Roth 403(b) funds only if you are eligible, otherwise your funds are subject to the distribution rules of the Supplemental Retirement and Savings Plan. An eligible distribution is (i) a distribution to an active Member on or after attaining age 59 1/2; (ii) a distribution made upon termination of employment, becoming disabled, or retirement; (iii) a distribution upon the Member’s death; or (iv) any distribution that would otherwise qualify as an eligible rollover distribution.