You do not have to take your money out of ORPPA when you retire or terminate employment. You can leave your money in the plan until you are age 70½, when you are required to take minimum distributions . Keeping your money in your ORPPA account may provide you with potentially more cost-effective retirement opportunities than rolling your money into a traditional IRA.
Why keep your assets in the plan? Several considerations are found in the Leaving Employment Guide .
ORPPA offers a variety of distribution options to suit your needs. Most distribution options can be changed at any time. You can obtain a Distribution Form online or by calling toll-free 1-877-327-5261.
Distribution options Include:
- Full lump-sum distribution
- Partial lump-sum distribution
- Periodic payments (monthly, quarterly, semi-annually or annually)
- Partial lump-sum distributions combined with periodic payments
- Purchase of an annuity with all or a portion of the account balance
- Roll over into an eligible retirement plan, such as a 401(a), 401(k), 403(b), governmental 457(b), traditional IRA or Federal Employees Thrift Savings Plan, that accepts such rollovers.*
*An IRS penalty for withdrawals from these plans prior to age 59½ may apply. Check with the plan that you are rolling into to ensure it accepts such rollovers.
ORPPA accepts incoming rollovers of pre-tax money from other eligible retirement plans, such as a 401(a), 401(k), 403(b), 457(b), traditional IRA or Federal Employees Thrift Savings Plans, as long as you maintain a balance in the plan. Certain after-tax rollovers are permitted into ORPPA. However, balances from Roth IRAs cannot be rolled into the plan. For additional information on consolidation, contact your VRS Defined Contribution Plans Retirement Specialist.