Triggering Event

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Dictionary Says

Definition of 'Triggering Event'

1. A tangible or intangible barrier or occurrence that, once breached or met, causes another event to occur. Triggering events are written into contracts to prevent or ensure that after a given occurrence, the terms of the original agreement are abandoned or changed to suit the party that included the triggering event in the agreement.   

2. A certain milestone or event that a participant in a qualified plan must experience in order to be eligible to receive a distribution from a qualified plan.
Investopedia Says

Investopedia explains 'Triggering Event'

1. It is common for banks to issue debt at a given interest rate on certain terms. For example, one of the bank's terms could be that the borrowing party does not incur any more debt for the term of the loan. Should the borrower incur more debt - the triggering event - the bank may foreclose on the loan or increase the original rate of interest accordingly.

2. Triggering events are typically characterized by the attainment of retirement age (as defined under the plan), termination of employment, termination of the plan, the participant becoming disabled (as defined under the plan) or the death of the participant.

In some cases, in-service withdrawals may be permitted within the plan, allowing for tax and penalty free distributions before a triggering event occurs.
Search results for

'Triggering Event'

  • Can I roll my 401(k) and/or IRA funds into a more liquid ...

    http://www.investopedia.com/ask/answers/169.asp
    ... The 401(k) plan is a different matter. You are able to withdraw assets from
    your 401(k) plan only if you experience a triggering event. ...

  • Tough Times: Should You Dip Into Your Qualified Plan?

    http://www.investopedia.com/articles/retirement/03/043003.asp
    ... Note that some plans do not consider this a triggering event and may require the
    employee to attain the plan's retirement age to be eligible to receive ...

  • Tips On How To Use IRAs To Boost Retirement Savings

    http://www.investopedia.com/articles/retirement/02/101602.asp
    ... Generally, you are allowed to distribute assets from qualified plans, 403(b)
    and 457(b) plans only if you experience a triggering event. ...

  • 403(b) Plan: Distributions | Investopedia

    http://www.investopedia.com/university/retirementplans/403b/403b3.asp
    ... Triggering Event Generally, distributions cannot be made until one of the following
    occurs: The employee reaches retirement age as defined under the plan. ...

  • 401(k) And Qualified Plans: Distributions | Investopedia

    http://www.investopedia.com/university/retirementplans/qualifiedplan/qualifiedplan4.asp
    ... Triggering Event Generally, distributions cannot be made until one of the following
    occurs: The employee reaches retirement age as defined under the plan. ...

  • The 4-1-1 On 401(k)s

    http://www.investopedia.com/articles/retirement/08/401k-info.asp
    ... The money inside the plan does grow tax-deferred as with IRAs, but whereas IRA
    distributions can be made at any time, a triggering event must be satisfied in ...

  • I will be receiving monies from a QDRO executed pursuant to my ...

    http://www.investopedia.com/ask/answers/03/072703.asp
    ... plans will not distribute assets pursuant to a QDRO until the plan participant,
    in this case your former spouse, experiences a triggering event, such as ...

  • Retirement Planning For 30-Somethings: Increasing Your Savings ...

    http://www.investopedia.com/university/retirement-30/retirement-303.asp
    ... A triggering event is one that qualifies you to make withdrawals from your account,
    such as reaching retirement age as defined by the plan or separating from ...

  • Top 9 Benefits Of A 403(b) Plan

    http://www.investopedia.com/articles/retirement/10/top-9-benefits-403b-plans.asp
    ... Missing even one payment on the loan can mean that you have defaulted on the entire
    loan amount, triggering IRS penalties for an early withdrawal. ...

  • Find Secure And Affordable Post-Work Health Insurance

    http://www.investopedia.com/articles/retirement/07/retirement_healthcare.asp
    Learn how you can avoid financial catastrophe - without Medicare.

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