Once all taxes are paid, you have money for now . . . The point is that once you withdraw money from your retirement plan and spend it, you can never put it back. If you are considering a withdrawal from your retirement plan, you should seek tax, legal or professional financial advice before taking any action. Immediate access to your savings. Lump sums may be eligible for income averaging.
Income tax is due on money withdrawn.
No tax deferral. Regardless of the reason for a change in employment status, if you have a retirement plan and need to make a decision about its future, you should always consult with a legal, tax or professional financial advisor. The information provided here is intended to be informative and to get you started thinking about your options. Many of the decisions you need to make are irrevocable and advice from a professional is essential. National Council on Teacher Retirment.