If you are already TDROPing, or if you are considering going into TDROP, you would benefit from meeting with us.  As someone who is in TDROP already, your decisions concerning how to best hold on to the reigns of your cash account at full retirement should be a concern. 

Four Quick Suggestions:

  • Don't take your money with plans to invest during the 60 day grace period - you will have 20% mandatory tax withheld and also owe tax later on the 20% amount sent to the IRS.
  • Don't take a full distribution in a lump sum - the IRS will take almost 1/2 of the entire balance
  • Don't leave it as an addition to your annuity - If this were your choice, you probably should not have TDROPed in the first place.  You give up all your cash for a fixed income and no emergency funds for emergencies or opportunities.  There are better options.
  • Make certain the company you select to help you is sound and the people are working in your interest.

If you would like assistance with your TDROP questions, please call us at 1-800-264-1569 or contact us on the web at: www.pbfsi.com.    Thank you for your consideration.