Accessibility Menu

Everything You Need to Know About Deferred Retirement Option Plans (DROPs)

By Motley Fool Retirement TeamUpdated Dec 4, 2024 at 5:13 PM

Key Points

  • DROPs let employees start pension collection while working by depositing it into a special account.
  • Funds in DROP accounts grow with interest and can be received upon retirement in various ways.
  • Choosing a lump sum from a DROP could lead to higher taxes, while rolling over funds offers tax-free growth.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.