What is Withdrawal Credits/ Pension Funds?
Definition of Withdrawal Credits/ Pension Funds
Withdrawal pension funds are the privilege that employee has to take out the accumulated amount of cash upon leaving an organization. The withdrawal credits allow employee to immediate rights to the amount contributed by him/her as well as the earning on the contributions. The employer contributions are given only to those employees who are entitled to receive it; the entitlement is based on legal statute.
Explanation of Withdrawal Credits/ Pension Funds
A fully vested employee can take out the accumulated amount of money, he/she might need to pay certain taxes and/or penalties and he/she can also transfer the amount to an Individual Retirement Account or to another organization but only in few cases.