I have an FICA Alternative Plan that the University I work for provided before becoming a staff member. The money can be withdrawn. Concerned about penalties by IRS.

[kiwanie]

I'm allowed to withdraw the money since I have another retirement account. The amount in the account is high but the money is just seating there. Is the IRS going to charge for withdrawing that money from that account that is no longer used? I work for a public university and that account was given when I was not a permanent employee. Now I am and have another retirement account.

[JaimeG]

You can withdraw money from a FICA alternative plan after leaving the job that provided this plan but withdrawals are subject to federal income taxes. Distributions can also be made starting at age 59 1/2, or if a worker becomes disabled. The IRS may charge a 10% penalty for withdrawals made before 59 1/2. Employees must begin required minimum distributions at 70 1/2.

Money in a FICA alternative retirement plan can be rolled over into other retirement accounts such as a traditional IRA.