Within 1-2 weeks of your separation from the company, Fidelity will mail a package to your address on file describing your rights under the Verizon Savings Plan.
If your vested account balance is less than $1,000, you will automatically receive a lump sum cash distribution as soon as practicable after you separate from service. You will have an opportunity to elect to roll over this lump sum distribution.
If your vested account balance is $1,000 or greater but not more than $5,000, your account will be automatically rolled over to an IRA with Fidelity unless you request to receive your benefit distribution in the form of a check payable to you or through a direct rollover to another IRA or eligible retirement plan.
If your vested account balance is greater than $5,000, there are several additional distribution options available to you. Below is a brief description of each of the distribution options available through the Plan. Additional information on these options will be included in the package that Fidelity will mail to you.
- Leave your account balance in the Verizon Savings Plan – you will continue to choose how you want your accounts invested (subject to 401(k) Plan limitations) and can request a distribution of your account balance at any time. Please note, however, in accordance with IRS requirements, you must begin receiving distributions from the 401(k) Plan no later than April 1st of the year following the year in which you reach age 72.
- Roll over your eligible account balance to an IRA or another employer’s eligible retirement plan – you will continue to defer taxes on any rollover amounts, as well as any future investment earnings.
- Request a lump sum distribution – your distribution will be paid to you in cash and you will owe income taxes on the taxable portion. You may also owe a 10% penalty tax on the taxable portion of the distribution if you receive it before you reach age 59 ½.
- Request installment payments – you can receive annual installments over a 2 – 20 year period provided the number of installments does not exceed your single life expectancy or the combined life expectancy of you and your beneficiary. Installments are paid in cash.
If you have any questions, please contact Fidelity at 1-888-457-9333. Representatives are available to assist you from 8:30 am – midnight on any day that the stock market is open.