By David Archuleta, Executive Director
Are you under the age of 55, retired, and receiving benefits from ERB? There are a few things that you need to know about the benefits you have received.
We encourage you to visit the appropriate IRS website and/or consult with an attorney or tax professional regarding the benefits you have received. This article should not be considered legal or tax advice and is only offered to you for informational purposes.
The IRS generally subjects a taxpayer to a 10% penalty if the taxpayer retired and received any retirement benefit before reaching the age of 55. However, there is generally an exemption from this 10% penalty if the taxpayer receives the same amount of retirement benefit each month. As an NMERB retiree, you may qualify for this exemption.
A person under the age of 55 may apply for the exemption by completing and filing IRS Form 5329 (Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts), which is available at the IRS website. NMERB staff cannot provide advice or assistance in completing the form, however, the instructions are available on the IRS website: Instructions for Form 5329.