Phillips 66 Savings Plan

Distributions

You are eligible to receive your account balance upon retirement, termination of employment, or total and permanent disability. You have the following options:

  • Leave it in the plan if your balance is more than $1,000. You must begin taking required minimum distributions when you reach age 72.
  • Receive it as a single-sum cash payment.
  • Roll it over to another employer's eligible plan or an IRA.
  • Receive it in installments (monthly, quarterly, semiannually, or annually).

Whether you keep your money where it is, move it to an IRA, or move it to another employer’s plan depends on your situation and preferences. Some things to consider are available investments and services, fees and expenses, and protection from creditors. Also consider withdrawal penalties, required distributions, and the tax effects of moving company stock to an IRA. There are other factors too. Weigh the pros and cons before you make your decision.

Taxes: Taking money from your retirement account can affect how much you'll have to pay in taxes. You'll owe taxes on pre-tax money. You won't owe taxes on Roth earnings as long as you are age 59½ or older and it's been at least five years since your first Roth contribution. If required by law, Vanguard will withhold some taxes for you. You may need to pay a 10% federal penalty tax if you take money out early.