Internal Revenue Code Section 403(B)
VAAP Frequently Asked Questions
Q. What is VAAP?
A. VAAP is a 403(b) program. Employees may set aside money on a pretax basis though weekly payroll deferral to save for retirement. Funds are transferred to an investment company and the contributions and any subsequent earnings are not taxed until distribution. The Aerospace Corporation does not make any contributions to the 403(b).
Q. When can I take a distribution?
A. You can take a distribution when you turn age 59 ½, separation from service, or become disabled. Contact investment company for more information.
Q. When do I take a Minimum Required Distribution (MRD) from VAAP?
A. Treasury Regulations require that a MRD must begin by April 1st following the calendar year in which you become age 70 ½. Please call your investment company for more information about MRDs. If you are still a regular or casual employee receiving a paycheck you do not have to take your MRD until you retire or stop working.
Q. What happens when I terminate from Aerospace?
A. When you terminate, your accounts may remain on deposit with your investment company. Contact your investment company for information regarding distributions.