Citi Benefits Handbook
Forms of Payment
In general, upon leaving the Company, you may take a distribution from the Plan in the following forms:
- A lump sum or partial payment of cash and/or employer stock. A distribution of less than all of your accounts is called a "partial termination distribution;"
- Monthly, quarterly, semiannual or annual installment payments;* or
- A rollover of some or all of your accounts to an IRA or another eligible retirement plan.
* Installment payments may be made for any period that does not extend beyond 15 years.
You also may defer payment. However, unless you remain employed by the Company, payments must begin after attaining age 70-1/2.
If you elect a "Partial Termination Distribution," the distribution generally is withdrawn on a pro-rata basis across all your account types and investment options. If you elect installment payments, each payment is withdrawn pro-rata across all your account types and investment options as in effect on each installment payment date.
You also may purchase a fixed annuity. The Plan does not offer a monthly annuity as a payment option (except as provided below in connection with money purchase plans that were merged into the Plan). However, you can contact the Plan for information about the benefits of retirement annuities and a program where you can take all or part of your Plan balance to purchase an individual annuity at group rates. You may want to consider consulting with a financial adviser before purchasing an annuity.
If you have an account that was transferred to the Plan from a prior employer's money purchase plan, you may elect to receive payment from your Money Purchase Plan Account in the form of an annuity. If you are married, and wish to elect a payment option for your Money Purchase Plan Account other than a 50% or 75% joint-and-survivor annuity option with your spouse as beneficiary, your spouse must consent to your election in writing. Your spouse's signature must be witnessed by a notary public. You may call or contact the Plan website to obtain the forms for spousal consent. See "How to Contact the Plan".
If any portion of your account is invested in the Citigroup Common Stock Fund or the State Street Common Stock Fund and you elect the lump-sum or installment option, you may request that those funds be distributed to you in shares of stock with any fractional shares distributed in cash.
You also may convert any cash or funds in your account into the Citigroup Common Stock Fund and request a distribution of your entire account in whole shares of Citigroup common stock. A fractional share will be converted and distributed in cash.
If you elect a partial or installment cash distribution from the Plan, the money will be taken from all funds in all your accounts on a pro-rata basis.
For details about how taxes affect your benefits distribution, see "How Benefits Are Taxed".
Distribution requests that are received by 4 p.m. ET are processed as of that day using the closing values for that day, or as reasonably practicable thereafter. Distribution requests that are received after 4 p.m. ET will be processed on the next business day using the closing values for that day. Certain exceptions apply to this general rule, such as when the market closes earlier than 4 p.m. ET or is not open for business on that day (i.e., a holiday or a weekend).