SPECIAL TAX NOTICE
Alternative to IRS Safe Harbor NoticeThis notice contains important information regarding your federal income tax options for your distribution from the Plan.
A. Types of Plan Distributions
Distributions are classified into two types: 1) distributions you may roll over ("eligible rollover distributions") and 2) distributions you may not rollover. You may receive a distribution in which part is an eligible rollover distribution and part is not eligible for rollover.
The following are not eligible for rollover:
a) A distribution that is part of a series of substantially equal payments made at least once a year and that will last for a period of 10 years or more.
b) The required minimum distributions you receive if you have attained age 70 1/2.
c) Any portion of your distribution which is nontaxable.
B. Direct Rollover
A direct rollover means your eligible rollover distribution goes directly to your IRA or another qualified employer plan. This is not subject to taxation until you later receive a distribution from the IRA or qualified employer plan.
You must include information about the IRA or qualified employer plan on your Participant Distribution Election form. You must also contact the IRA or the plan administrator of the qualified employer plan to determine their procedure for making a direct rollover and to determine if they will accept your direct rollover.
If your distribution is $500 or less, you must either elect a direct rollover of the entire amount or payment of the entire amount. If it is over $500, you may choose a direct rollover of only part, however, that amount must be at least $500.
C. Distributions You Receive
If you choose to receive part of an eligible rollover distribution, it is subject to 20% federal income tax withholding, unless you roll over the distribution to an IRA or another qualified employer plan within 60 days.
If part of your distribution is not eligible for rollover, you may elect whether to have federal income tax withholding applied by filling out Form W-4P provided for you.
If you receive a distribution from the Plan before age 59 1/2 and you choose not to roll it over, it is subject to a 10% penalty tax. See IRS Form 5329 for more information.
A lump sum distribution means you receive your entire distribution within one calendar year.
If you are not a self-employed individual, the distribution must occur after you have ended employment or attained age 59 1/2. If you are self-employed, the distribution must occur after you have attained age 59 1/2 or if you become disabled.
If you have participated in the Plan for at least 5 years, you may elect special tax treatment by filing Form 4972. See Instructions for this form for further details.
Please see IRS Publication 575 and Publication 590 for additional information. You may call 1-800-Tax-Form to obtain any of the forms mentioned.
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