Faculty members who retire from full-time service and then return to teaching as an adjunct faculty face special challenges in accessing retirement assets in defined contribution plans, which include the Alternate Retirement Program (ARP), the 403(b) and the 457 Plans. With only minor exceptions, the IRS prohibits an employee from receiving a distribution from these plans during a period of post-retirement employment with the same employer.
The Office of the State Comptroller’s Healthcare Policy and Benefit Services Division has sent out a memorandum explaining the issues in detail. It advises retiring faculty members in the ARP to map out a retirement distribution strategy BEFORE entering into any discussion about continued employment.
jrojas January 20th, 2013
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