Retiree 401(k) MAP Information
Important Notes
Below are important notes concerning the management of your 401(k) MAP account after retirement:
- Investment Accounts - Your investment funds must continue to be reviewed and managed just as they were before you retired.
- Begin Payments - If you have not started receiving scheduled payments yet, you may choose one of the available payment options voluntarily until you reach age 701/2, at which point mandatory payment must begin.
- Loans - You may acquire a loan from your MAP account as long as you: 1) currently have no outstanding loan and 2) you are not currently receiving MAP payments.
- Penalties - if you had not reached age 55 when you retired, there may be a 10% IRS penalty on any withdrawal.
- Withholding Tax - The Federal Government mandates that a 20% withholding tax be held on payments when the amount will cause the payout not to last 10 years or more.
Payment Options
You must select one of the following options upon termination of employment (including retirement):
1) Schedule periodic payment (ex., monthly)
2) Defer decision on payment option no later than age 70 1/2
3) Roll over funds to another qualified Retirement Plan, Traditional IRA, or Roth IRA.
4) Receive a lump-sum payout
For a more detailed explanation of these options read document Payment Options at Retirement (PDF).
To request a MAP Payout Estimate please contact the Retirement Office.
(to request an estimate of what your monthly payments would be with the options available)
Loans
Please read this if you are thinking about a loan: Loans Can Be Costly
NOTE: If you have any questions about how to borrow from your retirement account or wish to request a loan, you may call a Prudential Customer Service Representative at 1-800-833-5761, Monday through Friday, 8:00 a.m. to 8:00 p.m., Eastern Time.
Rules regarding loans from your MAP account include:
- Only one outstanding loan is allowed at one time
- You cannot be currently receiving MAP payments
- Minimum loan amount is $1,000
- An Application fee of $75 is charged for each loan application
- An Annual Processing Fee of $25 is charged
- The Interest Rate is equal to Prime plus 1%
- Coupon payments
Loan Disclosure Statement (PDF)
IRS Tax/Penalties
Please take note of these IRS rules:
1) Unless a withdrawal is rolled over to an IRA or other qualified Retirement Plan, the withdrawal amount is taxable.
2) You may withdraw funds from your MAP account provided you have terminated employment, however, if you have not reached 55 at the time you terminated, there may be a 10% penalty on any withdrawal.
3) If you have arranged to receive monthly or scheduled payments, a 20% mandatory withholding tax is automatically deducted from withdrawal payments if the payment amount will cause the payout not to last 10 years or more.
Forms & Publications
Beneficiary Designation Form (PDF)
Direct Deposit 401(k) Form (PDF)
W4P Withholding Form (PDF)
MAP Termination Distribution Form (PDF)
Payout Options at Retirement for 401(k) MAP (PDF)