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Tips for a $1M nest egg
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September 21, 2000: 12:10 p.m. ET
Be just as diligent about distribution planning as you have been about saving
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NEW YORK (CNNfn) - You've saved more than $1 million in your 403(b) plan and you're not sure how to take distributions. You're one of the lucky people who doesn't have to tap into your principal, but you might want to know your options with a lump sum. What should you do?
In response to a reader's question, Heather Locus, a certified financial planner from Schaumburg, Ill., and a member of the Financial Planning Association, talked about the benefits of different kinds of annuity payouts.
Ask the experts a question
I will be retiring in a few years and have accumulated over $1 million in my 403(b) retirement plan. All of the distribution options are based on annuities with maximum payouts based on my pre-retirement salary. Even if I elect the highest distribution amount, my account will earn far more interest each year than I will receive. Thus, my account will continue to grow and I will never get back any of the principal I paid in. Is there a way to access the principle either in a lump sum distribution or make some sort of rollover into an account I can access?
After being so diligent in your savings you are smart to become educated on your options before you have to make a decision. As for most people, this will probably be the largest financial decision you ever make at one time.
A 403(b) is a tax-deferred retirement plan for people who work for non-profit organizations.
Most likely, you have been given a selection of illustrations of annuity payouts as a sample of different choices, but they are probably not your only choices. It would be extremely rare for your 403(b) plan to not allow a lump sum distribution at retirement -- of course if you selected that option the distribution would be fully taxable in the year of receipt.
I recommend checking into the plan options further with your benefits administrator.
The good news is that no matter what your plan options are, once you retire you should be eligible to roll the plan over to an IRA so that you can take distributions as you wish and any remaining principal will pass on to your designated beneficiaries at death. 
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