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kl-sylva
Level 1

I'm receiving a monthly CalPERS pension but am shy of 59.5, wonder if I'm being penalized and if so does it change when I reach 59.5?

 
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MaryK1101
Expert Alumni

I'm receiving a monthly CalPERS pension but am shy of 59.5, wonder if I'm being penalized and if so does it change when I reach 59.5?

You will not have to penalty after you are 59 1/2.

 

If you receive pension or annuity payments before age 59½, you may be subject to an additional 10% tax on early distributions, unless the distribution qualifies for an exception.  The additional tax does not apply to any part of a distribution that's tax-free or to any of the following types of distributions:

  • Distributions made as a part of a series of substantially equal periodic payments that begins after your separation from service
  • Distributions made because you're totally and permanently disabled
  • Distributions made on or after the death of the plan participant or contract holder, and
  • Distributions made after your separation from service and in or after the year you reached age 55

 

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MaryK1101
Expert Alumni

I'm receiving a monthly CalPERS pension but am shy of 59.5, wonder if I'm being penalized and if so does it change when I reach 59.5?

You will not have to penalty after you are 59 1/2.

 

If you receive pension or annuity payments before age 59½, you may be subject to an additional 10% tax on early distributions, unless the distribution qualifies for an exception.  The additional tax does not apply to any part of a distribution that's tax-free or to any of the following types of distributions:

  • Distributions made as a part of a series of substantially equal periodic payments that begins after your separation from service
  • Distributions made because you're totally and permanently disabled
  • Distributions made on or after the death of the plan participant or contract holder, and
  • Distributions made after your separation from service and in or after the year you reached age 55

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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