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.
