Assume the employee does withdraw all of the funds whether you say it is a good idea or not: $30,000 contributed by her and $15,000 contributed by the employer. The plan has a 3-7 vesting schedule. Ignoring only ordinary income tax, how much will the employee receive at distribution in each of the following circumstances?
1-The employee is 35 years old, has worked for you for 6 years and is leaving to take another job. She plans on rolling over her distribution to her new employer’s qualified plan immediately.
2-The employee is 50 years old and in the midst of a mid-life crisis after working for you for 15 years. She quits and plans on taking her distribution to a tropical island where she will live until the money runs out.
3-The employee has worked for you for the last 10 years but is 63 years old and decides to retire early.
4-The employee has worked for you forever and never plans to retire. She is 72 years old and has a life expectancy of 15 years (according to the IRS).