Distributions from your ORP account paid directly to you, your survivor, or beneficiary are subject to federal and state income tax. In most cases, an additional 10 percent tax penalty may apply if you take a distribution before age 59 1/2. If you leave your ORP covered position after reaching age 55 or you begin an annuity or periodic distribution of equal payments over your lifetime, the penalty can be waived.

Contact a tax advisor or the IRS for additional information on taxes.