The full value of your vested account balance will be paid to you in a single cash payment, less the automatic tax withholding on the taxable portion of your payment, as required by law.
NOTE: If your account balance is $1,000 or less, it will automatically be paid to you in a single lump-sum cash payment after you retire, unless you elect to transfer it as a direct rollover into an IRA or a new employer’s plan that accepts rollovers.
Things to Consider
- You receive a single cash payment of your entire vested account balance. No other benefits are payable from the Plan after you receive the payment.
- You can defer paying taxes on your lump-sum payment by rolling it over to an IRA or other eligible employer’s retirement plan within 60 days of when you receive it.
- If a portion of your account is invested in the Rockwell Automation Stock Fund, you’ll need to decide how you want it paid out—either as cash or as stock.
NOTE: If you don’t roll over your lump-sum payment, the IRS requires that 20% automatically be withheld and you will have to pay additional income taxes at tax filing time if the 20% withholding amount is not enough. If you are younger than 59½, early withdrawal taxes may apply. Your payment is also subject to state and local income taxes where applicable. Some states, such as Ohio, require automatic state tax withholding, and you may be required to pay additional taxes at tax filing time if the amount withheld is not enough.