Do I still have to pay penalties and taxes on money that I don't roll over from a DROP fund?
A: It depends. Let's address the two penalties that will apply - the 10% early-withdrawal penalty and the 20% federal withholding - separately.Early-withdrawal penaltyIf the distribution from your Deferred Retirement Option Program (DROP) fund is made to you after you separate from service with your employer, and the separation occurred during or after the calendar year in which you reached ag...