distribution packet - oregonjan 13, 2017 · 403(b) or an ira, you may inherit some of those...

Distribution Packet

What requirements must I meet to be able to take payment from my OSGP account?

You must not work for any State agency or plan sponsor for a minimum

of 30 consecutive days. If you are working a temporary assignment

or do not have a break-in-service of 30 days or longer, you are not

eligible to start receiving payment from this plan. If you plan to

return to work on a temporary or part-time basis, call 888-320-7377.

Must I take a payment or start a distribution now?

No. As long as you are under age 70½ or still employed you do

not have to take a distribution. The latest date you may delay

your distribution if you are not still employed however, is April 1st

following the year in which you reach age 70½.

What can I do with my account balance in the Oregon Savings Growth Plan?

At the time you terminate your employment you have choices:

• Leave your money in your Oregon Savings Growth Plan account,

as long as you are under age 70½.

• Roll additional assets in from other retirement plans — such as

the IAP, 401(a), 401(k), 403(b), 457, or IRA — to consolidate your

retirement savings.

• Select among several flexible payment choices.

• Roll your account assets over to an IRA or other eligible

retirement plan.

Why should I consider leaving my money in the Oregon Savings Growth Plan?

There are a number of beneficial reasons. The OSGP offers:

• Low Fees. Benefit from some of the lowest plan fees in

the country.

• Simplicity. You can roll your IAP assets, as well as other

eligible retirement plans or IRAs, into a pre-tax or Roth after-tax

OSGP account.

• Convenience. Keep track of all your retirement savings with

one statement.

• Easy access. Start, stop, or adjust your payout whenever you

want with a simple phone call.

• Professional management. Enjoy access to investments

that are carefully selected and monitored by the Oregon

Investment Council.

• Satisfaction. Keeping your money in the Plan helps you take

advantage of some of the lowest plan fees in the country —

without paying commissions or transaction fees.

Keep your money in the Plan and enjoy the benefits OSGP offers, including:

Low fees

Convenient and easy account access

Professional investment management

Dedicated Plan representatives

Flexible distribution options

This distribution packet contains everything

you need to set up a distribution from your

Oregon Savings Growth Plan Account

Here is what you will find:

• Settlement Agreement

• Direct Deposit Form

• Transfer/Rollover In Information Packet

• Address/Name Change Form

• IRC Section 402(f) Notice

osgp.voya.com | 800-365-8494

What are my choices if I am age 70½ or older?

You must begin to receive payments from your account according

to the IRS Required Minimum Distribution rules unless you are still

employed by the plan sponsor. This means that you must begin your

distributions no later than April 1st following the year you turn age

70½ or terminate employment. If you select this date, you may be

required to take a double payment the first year. You may take

higher and more frequent payments, but you must begin a

distribution that satisfies the minimum requirements of the IRS.

What happens if I have an outstanding loan?

If you retire or terminate employment and still owe money on your

OSGP loan, you will have until the last day of the quarter following

the quarter in which your loan became due to pay the loan in full.

Otherwise, the outstanding balance will be considered a distribution,

and will be reported to the IRS as a taxable distribution. If you take

a lump-sum payment, those taxes owed on the outstanding loan

balance will be withheld from your lump-sum payment. If a portion

of the loan was a rollover from a 401(k), 403(b), 401(a), or IRA, you

may also be subject to a 10 percent penalty on the balance.

Can I roll my IAP, 401(a), 401(k), 403(b), or IRA accounts into my OSGP account?

Yes. By keeping all your retirement assets in your OSGP account,

you benefit from low cost investments overseen by the Oregon

Investment Council and, when you wish to take payments, you

have the same flexible payout options that are available with

an IRA. For more information, visit osgp.voya.com. A

Transfer/Rollover In Information Packet is included in this packet.

What are my options for taking money out of the Plan?

Lump-Sum Options1. Lump-Sum Payment. A distribution is issued for the total

balance in your account, less applicable federal and state taxes.

2. Partial Lump-Sum Payment. You may elect to receive a portion

of your account balance in a single payment, less applicable

federal and state taxes. You need to decide what to do with

your remaining account balance. You may use any of the options

below, or leave the money in your OSGP account.

Specified Period (Systematic Withdrawal) OptionThis option guarantees a specific number of monthly payments, but

does not guarantee the dollar amount for any payment since the

amount will vary, based on the performance of your investments

and your account balance at the time the payment is processed.

You must select a payment start date for this option, and you must

schedule payments for at least two years.

Specified Dollar AmountThis option will guarantee you a specified dollar amount payment,

but does not guarantee the number of payments. You will need

to select a payment start date for this option, and you must request

a payment that is at least equivalent to $100 per month.

Minimum DistributionThis option will distribute the lowest amount annually

required by federal law. The amount you will receive under this

option is based on a life expectancy factor from the Uniform Life

Expectancy Tables or Joint Life and Last Survivor Expectancy Table (if

your spouse is more than 10 years younger than you). Your payments

should begin during the year in which you turn age 70½, unless you

are still working for your plan sponsor at that time.

Please Note: Upon distribution, your funds will be withdrawn

on a pro-rata basis across all investment options, unless you choose

to have your distributions taken from the Stable Value Option.This

option is not available for minimum distributions. If you do choose

the Stable Value Option, it will be your responsibility to ensure that

funds are available in that option by 1:00 p.m. Pacific Time on the

date of each scheduled distribution.

Direct Rollover to an IRA or other eligible retirement planBy rolling money over to an eligible retirement plan such as a 401(k),

403(b) or an IRA, you may inherit some of those plans’ limitations.

For example, if you withdraw money from an IRA or most other

retirement plans prior to age 59½, you may have to pay both regular

state and federal income taxes on the payout, plus a 10 percent tax

penalty. That tax penalty never applies to 457 plan-related assets

remaining with the Oregon Savings Growth Plan.

Be certain to compare the fees of the Oregon Savings Growth

Plan with the fees of an IRA or any other retirement plan. With

OSGP, you have easy-to-understand investment options and low

administrative and investment fees, with no commissions, transfer

or account maintenance fees.

Keep in mind that 457 deferred compensation accounts in the

Oregon Savings Growth Plan may have more legal protection from

creditors in personal bankruptcy than do assets in an IRA.

If you are interested in this option, call 800-365-8494 to request

a Transfer/Rollover Out Packet.

What are my investment options for money that I leave in the Oregon Savings Growth Plan?

Please review information available on osgp.voya.com (or contact

OSGP to request information) about the investment options that are

available and how to make changes in those investment options, if

you choose to do so.

How soon will the first payment take place?

It may take 30 days or longer after the date you end employment to

receive a distribution. Processing depends on your termination date,

the date of receipt of your completed Distribution Packet Forms,

and the distribution option selected.

1. Lump-Sum and Partial Lump-Sum Payments are processed

upon request. Payment will depend on termination date and the

date you wish to receive or begin payment.

2. Installment Payments (specified dollar amount and specified

period of time) are processed for payment one time per month.

Those payments will be processed the last week of each month.

The Distribution Packet Forms should be received no later

than the 15th of the month you wish to be paid. Payment will

depend on receipt of forms, verified termination date and date

you wish to receive or begin payment.

3. Required Minimum Distribution (RMD) payments are

processed annually.

4. If you are younger than age 70½ and wish to defer payment,

you may complete the Distribution Packet Forms now or wait

until you are ready to begin receiving payments.

Do I need to complete Forms each time I want to receive a payment?

No. You generally need to complete the Distribution Packet Forms

one time only. Our office verifies your eligibility to take payment from

your account and activates your account for distribution. If you select

an installment payment that is paid to you regularly, your payment

will continue as you directed until you make a change. If you

request a partial payment and later wish to take another payment

or begin installment payments, simply call the Information Line at

800-365-8494 to speak to a Customer Service Representative

who will take your request. If you wish to increase, decrease, or

stop an installment payment, a Customer Service Representatives

can help you.

What if I return to work at a later date?

If you return to work either as a temporary, seasonal, part-time

or full time employee for a participating employer you are eligible

to participate in the plan. If you are taking distributions you will be

required to stop distributions prior to reactivating contributions.

Some exceptions could apply.

When you sever this segment of employment you will need to

reestablish your eligibility to take a distribution.

How do I advise the Oregon Savings Growth Plan of changes in personal information?

To change your personal information, such as name, address,

direct deposit, tax withholding, or beneficiary information,

please visit our website at osgp.voya.com or call the Information

Line at 800-365-8494.

osgp.voya.com | 800-365-8494

800 Summer Street N.E., Suite 200, Salem, OR 97301 / 888.320.7377 (Phone) / 503.603.7655 (Fax) / osgp.voya.com

SETTLEMENT AGREEMENT

SAVINGS GROWTH PLAN

SAVINGS GROWTH PLAN

SAVINGS GROWTH PLAN

SAVINGS GROWTH PLAN

159897 3020238.G.P-7

Name Social Security Number Severance Date

Address Daytime Phone Evening Phone

City, State, Zip Date of Birth Mother’s Maiden Name

Email Address

SL3

I. PERSONAL INFORMATION

A. Leave Money in the Plan With No Payment at This Time: (This is available only before age 701⁄2.)

Pending future payment. I understand that I must begin a minimum required distribution no later than April 1 following the year I turn 701/2. If I delay to this latest date, a double payment may have to be made. I understand that I do not need to submit a direct deposit or tax-withholding certificate until 30 days prior to the date when I wish to take payment.

B. Lump-Sum/Partial Lump-Sum Options:

1. Full Lump-Sum Payment. 2. Partial Lump-Sum Payment of $_____________. The balance, after this payment, should: Remain in my Oregon Savings Growth Plan account. Be paid as I have requested below to begin __________(month) __________(year). (Installment payments are made during the last week of the month selected) Be paid as a continuation of my current distribution.

C. Specified Period (Systematic Withdrawal) Option: (The period selected must be a minimum of two years.)

Number of Years: ___________ Frequency: Monthly Quarterly Semi-annually Annually (whole years only) (per elected month and year in section IV)

D. Specified Dollar Amount: (The amount selected must be at least equivalent to $100 monthly.)

Dollar Amount: ___________ Frequency: Monthly Quarterly Semi-annually Annually (per elected month and year in section IV)

E. Required Minimum Distribution:

Starting at age 701⁄2, I wish to receive the lowest payment amount required by federal law. Payments are recalculated and paid annually, per elected month and year in section IV. (Your deferral will be calculated based on the Uniform Life Expectancy Table unless your spouse is more than 10 years younger than you, then you may choose the Joint Life and Last Survivor Expectancy Table.)

F. Direct Rollover to Other Eligible Retirement Plan or IRA: Call 800-365-8494 to request a Transfer/Rollover Out Packet.

II. MANNER OF PAYMENT (Select one of the six options below.)

OSGP Use Only

III. DATE I WISH TO RECEIVE OR BEGIN PAYMENTS (Applies only to Options B, C, D, or E in Section II.)

Month_________________ Year__________________ (Installment payments (option C and D) are made during the last week of the month.)

The date you select must be at least 30 calendar days after the date of your retirement, but cannot be out further than 18 months. Your Settlement Agreement should arrive in the OSGP office at least 30 days prior to the date you select for distribution.

800 Summer Street N.E., Suite 200, Salem, OR 97301 / 888.320.7377 (Phone) / 503.603.7655 (Fax) / osgp.voya.com

If you have a pre-tax and Roth account, select which account you’d like your money distributed from.

Pre-tax Roth after-tax Both Pre-tax and Roth

A. Pro-rata across all allocated funds. B. Distribute from Stable Value Fund. Please note that if you choose Option B, it will be your responsibility to ensure that funds are available in the Stable

Value Fund by 1 p.m. P.T. on the day each distribution is scheduled; otherwise, your distribution will be pro-rated from allocated funds. This option is not available for Required Minimum Distributions (RMDs).

IV. HOW DO I WANT MONEY TO BE DISTRIBUTED? (Applies only to Options B, C, D, or E in Section II.)

V. TAX WITHOLDING

VI. DIRECT DEPOSIT

Federal Withholding: Indicate your distribution method by choosing option A or B.

A. I am taking Periodic Payments of less than ten years, a Full Lump Sum or a Partial Lump Sum. The IRS requires the Plan to withhold 20% of the distribution. 20% will be withheld if you do not choose an option. If you want the Plan to withhold a greater amount, please indicate that below: __________% (any whole percentage above 20%) ORB. I am taking Periodic Payments of 10 years of longer or a Required Minimum Distribution The IRS does not require a specific withholding rate. 10% will be withheld unless you choose an option below: Please do not withhold taxes. I request a withholding rate of more than 10%: _____________% (any whole percentage above 10%)

Note: Any amount withdrawn over the required minimum distribution that is eligible for rollover will be taxed at the required 20% federal withholding.

State Withholding: The Plan will withhold 8% Oregon State Tax unless you choose an option below: Please do not withhold taxes I request a withholding rate of more than 8% _______________% (any whole percentage above)

I have completed and have included the Direct Deposit Form Mail distribution to my address of record with OSGP

In compliance with the Americans with Disabilities Act, staff will provide assistance in filling out this form to anyone who needs it. You may request assistance from your Oregon Savings Growth Plan representative by calling 888-320-7377.

Approved by Oregon Savings Growth Plan Manager or Designee Date

VII. ACKNOWLEDGEMENT AND SIGNATURE

I understand that to be eligible to receive payment, I must have severed my employment with no intention to return to work. At the time of my termination from employment, I did not have an oral or written agreement to provide temporary or other services to my plan-sponsoring employer, whether that be the State of Oregon, a local government, or an educational entity. I must have at least a 30-consecutive-day break in service. By my signature below, I certify that I will meet the above criteria as of the date I have requested payment.

I read and understand all the payment options on this Settlement Agreement. I understand all the terms and conditions of the distribution process. I understand that the Plan reserves the right to recover any amount erroneously credited to my account or paid to me and to change my distribution options to comply with administrative rules, state statute, and federal law. Within the last 90 days, I received the 402(f) special tax notice, I understand its content, and I waive the 30-day notification requirement.

Participant’s Signature (Do not print) Date

X

OR350001MAINT3N 01/13/2017

SL3

800 Summer Street N.E., Suite 200, Salem, OR 97301 / 888-320-7377 -phone/ 503-603-7655 -fax / osgp.voya.com

Direct Deposit Form

160350 3020620.G.P-2

I authorize the Oregon Savings Growth Plan to make deposits to my account in the financial institution named above, and I authorize the financial institution to accept and credit any entries initiated by the Oregon Savings Growth Plan. This authorization is to remain in effect until the Oregon Savings Growth Plan receives written notification of its termination or closure of any account. I understand that processing any changes may take up to 30 days.


X

FOR OFFICIAL USE ONLY – OREGON SAVINGS GROWTH PLAN

Participant Alternate Payee Beneficiary

Cross-reference Participant Social Security Number

In compliance with the Americans with Disabilities Act, staff will provide assistance in filling out this form to anyone who needs it. You may request assistance from your Oregon Savings Growth Plan representative by calling 888-320-7377.

I. PartIcIPant InformatIon

II. fInancIal InstItutIon InformatIon

Bank, Savings & Loan, or Credit Union Name Institution Phone Number

Account Information (Mark One)

Checking or Savings

Enter account number and routing number of your financial institution.

Routing Number:

Account Number:

Name Social Security Number

Address

City, State, Zip Evening Phone

800 Summer Street N.E., Suite 200, Salem, OR 97301 / P 888.320.7377 / F 503.603.7655 / osgp.voya.com

TRANSFER/ROLLOVER IN INFORMATION PACKET

159878 3020219.G.P-7

SL3

TRANSFERRING OR ROLLING IN

The Oregon Savings Growth Plan (OSGP) allows you to consolidate your retirement savings dollars in one place to make navigating your financial world easier. You may transfer or roll all of your pre-tax or Roth after-tax dollars into your OSGP account from a:

• 457 deferred compensation plan or investment provider [pre-tax or Roth 457]

• traditional pre-tax IRA (Individual Retirement Account) [only on a pre-tax basis]

• 401(k) or 403(b) account established with a previous employer [pre-tax or Roth]

• 401(a) pension plan [only on a pre-tax basis]

What is the difference between a transfer and a rollover? A transfer involves the movement of money from one 457 deferred compensation plan to another or from one investment provider within a local government plan to another. A rollover occurs when money moves between a 457 plan and a 401(a), 401(k), 403(b) plan, or an IRA.

Why should I consider a transfer or rollover into the OSGP?There are several good reasons:

• You can keep all your retirement dollars in one place, making it easier to manage your money.

• You are able to invest in a wide range of easy-to-understand investments that are monitored by the OregonInvestment Council.

• You benefit from some of the lowest plan fees in the country.

• You pay no transaction fees for making investment changes.

• When you retire or end your employment, you have the same flexible payout options that are available with an IRA.

Are there restrictions I should know about?Yes, there are a few restrictions. OSGP accepts assets from pre-tax and after-tax accounts, including:

• 457 Plan pre-tax accounts

• Qualified plan pre-tax accounts

• 457 Roth after-tax accounts (provide the after-tax contribution value)

• Qualified plan Roth after-tax accounts (provide the after-tax contribution value)

• Assets from Roth IRAs cannot be rolled into OSGP.

Can I convert my pre-tax rollover to a Roth after-tax account?Yes. After you roll over assets from your 401(a), 401(k) or 403(b) into a OSGP qualified rollover account, you can submit a request to have any amount converted into your Roth after-tax qualified rollover account. You should consult your accountant or tax advisor before doing this, as you will be taxed on the amount you convert from your pre-tax account into your Roth after-tax in the year you convert, instead of when you take distribution from your account.

Do you charge a fee for a transfer or rollover?No. It is possible, however, that your previous provider may impose fees or penalties for the transfer or rollover. If so, you may want to compare the short-term cost of the transfer against the long-term advantages of the consolidation.


How will my transfer/rollover dollars be invested?

• When you transfer assets from a 457 account, your assets will be added to the money in your Oregon Savings Growth

Plan account. You may choose a separate asset allocation for your transfer over assets, or your tansfer over money will be put into investments according to the future asset allocation you have already selected or you may choose a different allocation on the Transfer/Rollover IN form.

• If you are rolling money in from another type of plan – such as 401(a), 401(k), 403(b), or IRA – a separate accountwill be established for tax purposes, but your rolled-over money will be put into investments according to the asset allocationyou have already selected or you may choose a different allocation on the Transfer/Rollover IN form. If you make transfersfrom one investment to another within the Plan after your rollover is complete, the transfer will occur in both accountssimultaneously. (For investment purposes, your retirement assets will be treated as a single account, but for tax reportingpurposes, separate accounting must be maintained.)

Pre-tax money will be rolled into your account as pre-tax contributions; after-tax money will be rolled into your account as Roth (after-tax) contributions.

Will my OSGP 457 account still be available without the 10 percent tax penalty when I end my employment?Yes. The 10 percent tax penalty that is assessed against certain payments made from a tax-deferred account and received before age 591⁄2 does not apply to payments made from the 457 portion of your OSGP account. But be careful: If you take payments before age 591⁄2 from that portion of your account which was rolled from a 401(a), 401(k), 403(b), or IRA, the 10 percent tax penalty will be applied to that portion of your payments. Basically, for tax treatment, the 457 portion of your account is subject to the 457 laws and the money that came into your account from other types of plans is subject to the laws governing the original plan type.

When can Roth assets be withdrawn tax-free?In order for Roth deferrals and associated earnings to be withdrawn tax-free, the requirements for a “qualified distribution” must be met. Distribution of Roth assets are qualified if: a period of five years has passed since January 1 of the year of your first Roth contribution; and you are at least 591⁄2 years old (or disabled or deceased).

How do I take advantage of this opportunity?

1. Check with your previous investment provider to ensure that your assets are eligible for rollover.

2. Ask the provider for the forms you need to complete.

3. Complete your previous investment provider’s form and the attached Transfer/Rollover IN form.

4. Mail or fax all required forms to:

Oregon Savings Growth Plan800 Summer Street N.E., Suite 200Salem, OR 97301Phone: 888-320-7377 Fax: 503-603-7655

Our Rollover-In team will work with your previous provider to complete the transaction. Most transfers or rollovers will result in a check being issued and deposited directly to your account. If a provider sends a check to you instead, please forward it to us immediately. You will be notified when the deposit to your account has occurred.

If you have additional questions, go to osgp.voya.com or call our toll-free Information Line at 800-365-8494.

gannonk

Cross-Out

gannonk

Cross-Out


PLEASE CHECK ONE BOX FROM EITHER THE TRANSFER OR DIRECT ROLLOVER SECTIONS BELOW:

TRANSFER/ROLLOVER IN

Transfer:

Roth after-tax amounts from a 457 Plan Pre-tax amounts from a 457 Plan

Direct Rollover (for transfer of eligible assets) from one of the following plans:

Pre-tax: 401(a) 401(k) 403(b) Pre-tax IRARoth after-tax: 401(k) 403(b)

Incomplete information may cause a delay in processing.FORMER INVESTMENT PROVIDER CONTACT PERSON

ADDRESS ACCOUNT NUMBER

CITY, STATE, ZIP PHONE NUMBER

I understand that my account with my previous provider may be assessed penalties for early withdrawal, loss of interest, and other related costs. I understand that I will be taxed on any assets rolled over in error. I understand that if I roll assets from a 401(a), 401(k), 403(b), or an IRA, they will retain the tax characteristics of the Plan from which they are being rolled. I authorize liquidation of assets with my previous provider to affect this rollover.

PLEASE CHECK ONE BOX:

Allocate my rollover according to the future asset allocation I have already established. Split the rollover as I have indicated below (the sum of all choices must equal 100%):

PARTICIPANT’S SIGNATURE (DO NOT PRINT) DATE

X

Target Date Funds – choosing just one fund gives you a diversified portfolio

Select the fund closest to the date you plan to begin withdrawing money from your account:

LifePath 2060 % LifePath 2055 % LifePath 2045 % LifePath 2035 % LifePath 2025 %

LifePath 2050 % LifePath 2040 % LifePath 2030 % LifePath 2020 % LifePath Retirement %

Individual Asset Class Funds – mix and match to create a diversified portfolio

Short-Term Fixed Income Option % Stock Index Option %

Stable Value Option % Socially Responsible Investment Option %

Active Fixed Income % Large Company Growth Stock Option %

Large Company Value Stock Option % International Stock Option %

Real Return Fund % Small Company Stock Option %

NAME

ADDRESS

CITY, STATE, ZIP

SOCIAL SECURITY or OR NUMBER

DATE OF BIRTH

DAYTIME PHONE

EVENING PHONE

EMAIL

160121 3020422.G.P-1

Complete this form if your address has changed.

Actively deferring State employees can submit address/name change information through agency payroll and

human resource departments and do not have to use this form. All other participants should provide the requested information below and mail as directed.

OLD

NEW

X


(This form must be signed by the participant in order to be processed.)

Mail this form to:

Oregon Savings Growth Plan 800 Summer Street NE Suite 200 Salem, OR 97301 888-320-7377 Fax – 503-603-7655

Please review this form and keep a copy for your records. Call the Oregon Savings Growth Plan Information Line at 800-365-8494 if you have any questions. Customer Service Associates are available Monday through Friday, between 7:00 a.m. and 5:00 p.m. Pacifi Time,except on New York Stock Exchange holidays.

SL3

Social Security Number Telephone Number

PLEASE CHANGE MY ADDRESS/NAME AS FOLLOWS: PLEASE PRINT

ADDRESS/NAME CHANGE FORM

800 Summer Street N.E., Suite 200, Salem, OR 97301 / 888-320-7377 (Phone) / 503-603-7655 (Fax) / osgp.voya.com 160121 3020422.G.P -3

Name

Address

City, State, Zip

Name

Address

City, State, Zip

1

160370 3020636.G.P-4 402f_OR

Your Rollover Options for Payments Not from a Designated Roth Account

You are receiving this notice in the event that all or a portion of a payment you are receiving from the Plan is eligible to be rolled over to an IRA or an employer plan. This notice is intended to help you decide whether to do such a rollover.

This notice describes the rollover rules that apply to payments from the Plan that are not from a designated Roth account (a type of account with special tax rules in some employer plans). If you also receive a payment from a designated Roth account in the Plan, you will be provided a different notice for that payment, and the Plan administrator or the payor will tell you the amount that is being paid from each account.

Rules that apply to most payments from a plan are described in the “General Information About Rollovers” section. Special rules that only apply in certain circumstances are described in the “Special Rules and Options” section.

GENERAL INFORMATION ABOUT ROLLOVERS

How can a rollover affect my taxes?You will be taxed on a payment from the Plan if you do not roll it over. If you are under age 59½ and do not do a rollover, you will also have to pay a 10% additional income tax on early distributions (unless an exception applies). However, if you do a rollover, you will not have to pay tax until you receive payments later and the 10% additional income tax will not apply if those payments are made after you are age 59½ (or if an exception applies).

Where may I roll over the payment?You may roll over the payment to either an IRA (an individual retirement account or individual retirement annuity) or an employer plan (a tax-qualified plan, section 403(b) plan, or governmental section 457(b) plan) that will accept the rollover. The rules of the IRA or employer plan that holds the rollover will determine your investment options, fees, and rights to payment from the IRA or employer plan (for example, no spousal consent rules apply to IRAs and IRAs may not provide loans). Further, the amount rolled over will become subject to the tax rules that apply to the IRA or employer plan.

How do I do a rollover?There are two ways to do a rollover. You can do either a direct rollover or a 60-day rollover.

If you do a direct rollover, the Plan will make the payment directly to your IRA or an employer plan. You should contact the IRA sponsor or the administrator of the employer plan for information on how to do a direct rollover.

If you do not do a direct rollover, you may still do a rollover by making a deposit into an IRA or eligible employer plan that will accept it. You will have 60 days after you receive the payment to make the deposit. If you do not do a direct rollover, the Plan is required to withhold 20% of the payment for federal income taxes (up to the amount of cash and property received other than employer stock). This means that, in order to roll over the entire payment in a 60-day rollover, you must use other funds to make up for the 20% withheld. If you do not roll over the entire amount of the payment, the portion not rolled over will be taxed and will be subject to the 10% additional income tax on early distributions if you are under age 59½ (unless an exception applies).

How much may I roll over? If you wish to do a rollover, you may roll over all or part of the amount eligible for rollover. Any payment from the Plan is eligible for rollover, except:

• Certainpaymentsspreadoveraperiodofatleast10yearsoroveryourlifeorlifeexpectancy(orthelivesorjointlifeexpectancy of you and your beneficiary)

• Requiredminimumdistributionsafterage70½(orafterdeath)

• Hardshipdistributions

• ESOPdividends

IRC SECTION 402(F)

SL3

800 Summer Street N.E., Suite 200, Salem, OR 97301 / 888-320-7377 (Phone) / 503-603-7655 (Fax) / osgp.voya.com

2

• Correctivedistributionsofcontributionsthatexceedtaxlawlimitations

• Loanstreatedasdeemeddistributions(forexample,loansindefaultduetomissedpaymentsbeforeyouremploymentends)

• CostoflifeinsurancepaidbythePlan

• Contributionsmadeunderspecialautomaticenrollmentrulesthatarewithdrawnpursuanttoyourrequestwithin90days of enrollment

• AmountstreatedasdistributedbecauseofaprohibitedallocationofScorporationstockunderanESOP(also,therewillgenerally be adverse tax consequences if you roll over a distribution of S corporation stock to an IRA).

The Plan administrator or the payor can tell you what portion of a payment is eligible for rollover.

If I don’t do a rollover, will I have to pay the 10% additional income tax on early distributions?

If you are under age 59½, you will have to pay the 10% additional income tax on early distributions for any payment from the Plan (including amounts withheld for income tax) that you do not roll over, unless one of the exceptions listed below applies. This tax is in addition to the regular income tax on the payment not rolled over.

The 10% additional income tax does not apply to the following payments from the Plan:

• Paymentsmadeafteryouseparatefromserviceifyouwillbeatleastage55intheyearoftheseparation

• Paymentsthatstartafteryouseparatefromserviceifpaidatleastannuallyinequalorclosetoequalamountsoveryourlife or life expectancy (or the lives or joint life expectancy of you and your beneficiary)

• Paymentsfromagovernmentaldefinedbenefitpensionplanmadeafteryouseparatefromserviceifyouareapublicsafety employee and you are at least age 50 in the year of the separation

• Paymentsmadeduetodisability

• Paymentsafteryourdeath

• PaymentsofESOPdividends



• Paymentsmadedirectlytothegovernmenttosatisfyafederaltaxlevy

• Paymentsmadeunderaqualifieddomesticrelationsorder(QDRO)

• Paymentsuptotheamountofyourdeductiblemedicalexpenses

• CertainpaymentsmadewhileyouareonactivedutyifyouwereamemberofareservecomponentcalledtodutyafterSeptember 11, 2001 for more than 179 days

• Paymentsofcertainautomaticenrollmentcontributionsrequestedtobewithdrawnwithin90daysofthefirstcontribution

If I do a rollover to an IRA, will the 10% additional income tax apply to early distributions from the IRA?If you receive a payment from an IRA when you are under age 59½, you will have to pay the 10% additional income tax on early distributions from the IRA, unless an exception applies. In general, the exceptions to the 10% additional income tax for early distributions from an IRA are the same as the exceptions listed above for early distributions from a plan. However, there are a few differences for payments from an IRA, including:

• Thereisnoexceptionforpaymentsafterseparationfromservicethataremadeafterage55.

• Theexceptionforqualifieddomesticrelationsorders(QDROs)doesnotapply(althoughaspecialruleappliesunderwhich, as part of a divorce or separation agreement, a tax-free transfer may be made directly to an IRA of a spouse orformer spouse).

• Theexceptionforpaymentsmadeatleastannuallyinequalorclosetoequalamountsoveraspecifiedperiodapplieswithout regard to whether you have had a separation from service.

• Thereareadditionalexceptionsfor(1)paymentsforqualifiedhighereducationexpenses,(2)paymentsupto$10,000used in a qualified first-time home purchase, and (3) payments for health insurance premiums after you have receivedunemployment compensation for 12 consecutive weeks (or would have been eligible to receive unemploymentcompensation but for self-employed status).

Will I owe State income taxes? This notice does not describe any State or local income tax rules (including withholding rules).


3

SPECIAL RULES AND OPTIONS

If your payment includes after-tax contributionsAfter-tax contributions included in a payment are not taxed. If a payment is only part of your benefit, an allocable portion of your after-tax contributions is included in the payment, so you cannot take a payment of only after-tax contributions. However, if you have pre-1987 after-tax contributions maintained in a separate account, a special rule may apply to determine whether the after-tax contributions are included in a payment. In addition, special rules apply when you do a rollover, as described below.

You may roll over to an IRA a payment that includes after-tax contributions through either a direct rollover or a 60-day rollover. You must keep track of the aggregate amount of the after-tax contributions in all of your IRAs (in order to determine your taxable income for later payments from the IRAs). If you do a direct rollover of only a portion of the amount paid from the Plan and at the same time the rest is paid to you, the portion directly rolled over consists first of the amount that would be taxable ifnotrolledover.Forexample,assumeyouarereceivingadistributionof$12,000,ofwhich$2,000isafter-taxcontributions.Inthiscase,ifyoudirectlyrollover$10,000toanIRAthatisnotaRothIRA,noamountistaxablebecausethe$2,000amountnot directly rolled over is treated as being after-tax contributions. If you do a direct rollover of the entire amount paid from the Plan to two or more destinations at the same time, you can choose which destination receives the after-tax contributions.

If you do a 60-day rollover to an IRA of only a portion of a payment made to you, the after-tax contributions are treated as rolledoverlast.Forexample,assumeyouarereceivingadistributionof$12,000,ofwhich$2,000isafter-taxcontributions,andnopartofthedistributionisdirectlyrolledover.Inthiscase,ifyourollover$10,000toanIRAthatisnotaRothIRAina60-dayrollover,noamountistaxablebecausethe$2,000amountnotrolledoveristreatedasbeingafter-taxcontributions.

You may roll over to an employer plan all of a payment that includes after-tax contributions, but only through a direct rollover (and only if the receiving plan separately accounts for after-tax contributions and is not a governmental section 457(b) plan). You can do a 60-day rollover to an employer plan of part of a payment that includes after-tax contributions, but only up to the amount of the payment that would be taxable if not rolled over.

If you miss the 60-day rollover deadlineGenerally, the 60-day rollover deadline cannot be extended. However, the IRS has the limited authority to waive the deadline under certain extraordinary circumstances, such as when external events prevented you from completing the rollover by the 60-day rollover deadline. To apply for a waiver, you must file a private letter ruling request with the IRS. Private letter ruling requests require the payment of a nonrefundable user fee. For more information, see IRS Publication 590-A, Contributions from Individual Retirement Arrangements (IRAs).

If your payment includes employer stock that you do not roll over If you do not do a rollover, you can apply a special rule to payments of employer stock (or other employer securities) that are either attributable to after-tax contributions or paid in a lump sum after separation from service (or after age 59½, disability, or the participant’s death). Under the special rule, the net unrealized appreciation on the stock will not be taxed when distributed from the Plan and will be taxed at capital gain rates when you sell the stock. Net unrealized appreciation is generally the increase in the value of employer stock after it was acquired by the Plan. If you do a rollover for a payment that includes employer stock (for example, by selling the stock and rolling over the proceeds within 60 days of the payment), the special rule relating to the distributed employer stock will not apply to any subsequent payments from the IRA or employer plan. The Plan administrator can tell you the amount of any net unrealized appreciation.

If you have an outstanding loan that is being offset If you have an outstanding loan from the Plan, your Plan benefit may be offset by the amount of the loan, typically when your employment ends. The loan offset amount is treated as a distribution to you at the time of the offset and will be taxed (including the 10% additional income tax on early distributions, unless an exception applies) unless you do a 60-day rollover in the amount of the loan offset to an IRA or employer plan.

If you were born on or before January 1, 1936If you were born on or before January 1, 1936 and receive a lump sum distribution that you do not roll over, special rules for calculating the amount of the tax on the payment might apply to you. For more information, see IRS Publication 575, Pension and Annuity Income.


4

If your payment is from a governmental section 457(b) planIf the Plan is a governmental section 457(b) plan, the same rules described elsewhere in this notice generally apply, allowing you to roll over the payment to an IRA or an employer plan that accepts rollovers. One difference is that, if you do not do a rollover, you will not have to pay the 10% additional income tax on early distributions from the Plan even if you are under age 59½ (unless the payment is from a separate account holding rollover contributions that were made to the Plan from a tax-qualified plan, a section 403(b) plan, or an IRA). However, if you do a rollover to an IRA or to an employer plan that is not a governmental section 457(b) plan, a later distribution made before age 59½ will be subject to the 10% additional income tax on early distributions (unless an exception applies). Other differences are that you cannot do a rollover if the payment is due to an “unforeseeable emergency” and the special rules under “If your payment includes employer stock that you do not roll over” and “If you were born on or before January 1, 1936” do not apply.

If you are an eligible retired public safety officer and your pension payment is used to pay for health coverage or qualified long-term care insuranceIf the Plan is a governmental plan, you retired as a public safety officer, and your retirement was by reason of disability or was after normal retirement age, you can exclude from your taxable income plan payments paid directly as premiums to an accident or health plan (or a qualified long-term care insurance contract) that your employer maintains for you, your spouse, oryourdependents,uptoamaximumof$3,000annually.Forthispurpose,apublicsafetyofficerisalawenforcementofficer, firefighter, chaplain, or member of a rescue squad or ambulance crew.

If you roll over your payment to a Roth IRA If you roll over a payment from the Plan to a Roth IRA, a special rule applies under which the amount of the payment rolled over (reduced by any after-tax amounts) will be taxed. However, the10% additional income tax on early distributions will not apply (unless you take the amount rolled over out of the Roth IRA within 5 years, counting from January 1 of the year of the rollover).

If you roll over the payment to a Roth IRA, later payments from the Roth IRA that are qualified distributions will not be taxed (including earnings after the rollover). A qualified distribution from a Roth IRA is a payment made after you are age 59½ (or afteryourdeathordisability,orasaqualifiedfirst-timehomebuyerdistributionofupto$10,000)andafteryouhavehadaRoth IRA for at least 5 years. In applying this 5-year rule, you count from January 1 of the year for which your first contribution was made to a Roth IRA. Payments from the Roth IRA that are not qualified distributions will be taxed to the extent of earnings after the rollover, including the 10% additional income tax on early distributions (unless an exception applies). You do not have to take required minimum distributions from a Roth IRA during your lifetime. For more information, see IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs), and IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs).

If you are not a plan participantPayments after death of the participant. If you receive a distribution after the participant’s death that you do not roll over, the distribution will generally be taxed in the same manner described elsewhere in this notice. However, the 10% additional income tax on early distributions and the special rules for public safety officers do not apply, and the special rule described under the section “If you were born on or before January 1, 1936” applies only if the participant was born on or before January 1, 1936.

If you are a surviving spouse. If you receive a payment from the Plan as the surviving spouse of a deceased participant, you have the same rollover options that the participant would have had, as described elsewhere in this notice. In addition, if you choose to do a rollover to an IRA, you may treat the IRA as your own or as an inherited IRA.

An IRA you treat as your own is treated like any other IRA of yours, so that payments made to you before you are age 59½ will be subject to the 10% additional income tax on early distributions (unless an exception applies) and required minimum distributions from your IRA do not have to start until after you are age 70½.


5

If you treat the IRA as an inherited IRA, payments from the IRA will not be subject to the 10% additional income tax on early distributions. However, if the participant had started taking required minimum distributions, you will have to receive required minimum distributions from the inherited IRA. If the participant had not started taking required minimum distributions from the Plan, you will not have to start receiving required minimum distributions from the inherited IRA until the year the participant would have been age 70½.

If you are a surviving beneficiary other than a spouse. If you receive a payment from the Plan because of the participant’s death and you are a designated beneficiary other than a surviving spouse, the only rollover option you have is to do a direct rollover to an inherited IRA. Payments from the inherited IRA will not be subject to the 10% additional income tax on early distributions. You will have to receive required minimum distributions from the inherited IRA.

Payments under a qualified domestic relations order. If you are the spouse or former spouse of the participant who receives a paymentfromthePlanunderaqualifieddomesticrelationsorder(QDRO),yougenerallyhavethesameoptionstheparticipantwould have (for example, you may roll over the payment to your own IRA or an eligible employer plan that will accept it). PaymentsundertheQDROwillnotbesubjecttothe10%additionalincometaxonearlydistributions.

If you are a nonresident alien If you are a nonresident alien and you do not do a direct rollover to a U.S. IRA or U.S. employer plan, instead of withholding 20%, the Plan is generally required to withhold 30% of the payment for federal income taxes. If the amount withheld exceeds the amount of tax you owe (as may happen if you do a 60-day rollover), you may request an income tax refund by filing Form1040NRandattachingyourForm1042-S.SeeFormW-8BENforclaimingthatyouareentitledtoareducedrateofwithholding under an income tax treaty. For more information, see also IRS Publication 519, U.S. Tax Guide for Aliens, and IRS Publication515,WithholdingofTaxonNonresidentAliensandForeignEntities.

Other special rules If a payment is one in a series of payments for less than 10 years, your choice whether to make a direct rollover will apply to all later payments in the series (unless you make a different choice for later payments).

Ifyourpaymentsfortheyeararelessthan$200(notincludingpaymentsfromadesignatedRothaccountinthePlan),thePlan is not required to allow you to do a direct rollover and is not required to withhold for federal income taxes. However, you may do a 60-day rollover.

Unlessyouelectotherwise,amandatorycashoutofmorethan$1,000(notincludingpaymentsfromadesignatedRothaccount in the Plan) will be directly rolled over to an IRA chosen by the Plan administrator or the payor. A mandatory cashout is a payment from a plan to a participant made before age 62 (or normal retirement age, if later) and without consent, where theparticipant’sbenefitdoesnotexceed$5,000(notincludinganyamountsheldundertheplanasaresultofapriorrollovermade to the plan). You may have special rollover rights if you recently served in the U.S. Armed Forces. For more information, see IRS Publication 3, Armed Forces’ Tax Guide.

FOR MORE INFORMATION

You may wish to consult with the Plan administrator or payor, or a professional tax advisor, before taking a payment from the Plan. Also, you can find more detailed information on the federal tax treatment of payments from employer plans in: IRS Publication 575, Pension and Annuity Income; IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs); IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs); and IRS Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans). These publications are available from a local IRS office, on the web at www.irs.gov, or by calling 1-800-TAX-FORM.

* * *


6

Your Rollover Options for Payments from a Designated Roth Account

You are receiving this notice in the event that all or a portion of a payment you are receiving from the Plan is eligible to be rolled over to a Roth IRA or designated Roth account in an employer plan. This notice is intended to help you decide whether to do a rollover.

This notice describes the rollover rules that apply to payments from the Plan that are from a designated Roth account. If you also receive a payment from the Plan that is not from a designated Roth account, you will be provided a different notice for that payment, and the Plan administrator or the payor will tell you the amount that is being paid from each account.

Rules that apply to most payments from a designated Roth account are described in the “General Information About Rollovers” section. Special rules that only apply in certain circumstances are described in the “Special Rules and Options” section.

GENERAL INFORMATION ABOUT ROLLOVERS

How can a rollover affect my taxes? After-tax contributions included in a payment from a designated Roth account are not taxed, but earnings might be taxed. The tax treatment of earnings included in the payment depends on whether the payment is a qualified distribution. If a payment is only part of your designated Roth account, the payment will include an allocable portion of the earnings in your designated Roth account.

If the payment from the Plan is not a qualified distribution and you do not do a rollover to a Roth IRA or a designated Roth account in an employer plan, you will be taxed on the earnings in the payment. If you are under age 59½, a 10% additional income tax on early distributions will also apply to the earnings (unless an exception applies). However, if you do a rollover, you will not have to pay taxes currently on the earnings and you will not have to pay taxes later on payments that are qualified distributions.

If the payment from the Plan is a qualified distribution, you will not be taxed on any part of the payment even if you do not do a rollover. If you do a rollover, you will not be taxed on the amount you roll over and any earnings on the amount you roll over will not be taxed if paid later in a qualified distribution.

A qualified distribution from a designated Roth account in the Plan is a payment made after you are age 59½ (or after your death or disability) and after you have had a designated Roth account in the Plan for at least 5 years. In applying the 5-year rule, you count from January 1 of the year your first contribution was made to the designated Roth account. However, if you did a direct rollover to a designated Roth account in the Plan from a designated Roth account in another employer plan, your participation will count from January 1 of the year your first contribution was made to the designated Roth account in the Plan or, if earlier, to the designated Roth account in the other employer plan.

Where may I roll over the payment?

You may roll over the payment to either a Roth IRA (a Roth individual retirement account or Roth individual retirement annuity) or a designated Roth account in an employer plan (a tax-qualified plan or section 403(b) plan) that will accept the rollover. The rules of the Roth IRA or employer plan that holds the rollover will determine your investment options, fees, and rights to payment from the Roth IRA or employer plan (for example, no spousal consent rules apply to Roth IRAs and Roth IRAs may not provide loans). Further, the amount rolled over will become subject to the tax rules that apply to the Roth IRA or the designated Roth account in the employer plan. In general, these tax rules are similar to those described elsewhere in this notice, but differences include:

• IfyoudoarollovertoaRothIRA,allofyourRothIRAswillbeconsideredforpurposesofdeterminingwhetheryouhavesatisfied the 5-year rule (counting from January 1 of the year for which your first contribution was made to any of yourRoth IRAs).

800 Summer Street N.E., Suite 200, Salem, OR 97301 888-320-7377 (Phone) / 503-603-7655 (Fax) / osgp.voya.com

7

• IfyoudoarollovertoaRothIRA,youwillnotberequiredtotakeadistributionfromtheRothIRAduringyourlifetimeand you must keep track of the aggregate amount of the after-tax contributions in all of your Roth IRAs (in order todetermine your taxable income for later Roth IRA payments that are not qualified distributions).

• EligiblerolloverdistributionsfromaRothIRAcanonlyberolledovertoanotherRothIRA.

How do I do a rollover? There are two ways to do a rollover. You can either do a direct rollover or a 60-day rollover.

If you do a direct rollover, the Plan will make the payment directly to your Roth IRA or designated Roth account in an employer plan. You should contact the Roth IRA sponsor or the administrator of the employer plan for information on how to do a direct rollover.

If you do not do a direct rollover, you may still do a rollover by making a deposit within 60 days into a Roth IRA, whether the payment is a qualified or nonqualified distribution. In addition, you can do a rollover by making a deposit within 60 days into a designated Roth account in an employer plan if the payment is a nonqualified distribution and the rollover does not exceed the amount of the earnings in the payment. You cannot do a 60-day rollover to an employer plan of any part of a qualified distribution. If you receive a distribution that is a nonqualified distribution and you do not roll over an amount at least equal to the earnings allocable to the distribution, you will be taxed on the amount of those earnings not rolled over, including the 10% additional income tax on early distributions if you are under age 59½ (unless an exception applies).

If you do a direct rollover of only a portion of the amount paid from the Plan and a portion is paid to you at the same time, the portion directly rolled over consists first of earnings.

If you do not do a direct rollover and the payment is not a qualified distribution, the Plan is required to withhold 20% of the earnings for federal income taxes (up to the amount of cash and property received other than employer stock). This means that, in order to roll over the entire payment in a 60-day rollover to a Roth IRA, you must use other funds to make up for the 20% withheld.

How much may I roll over?

If you wish to do a rollover, you may roll over all or part of the amount eligible for rollover. Any payment from the Plan is eligible for rollover, except:

• Certainpaymentsspreadoveraperiodofatleast10yearsoroveryourlifeorlifeexpectancy(orthelivesorjointlifeexpectancy of you and your beneficiary)

• Requiredminimumdistributionsafterage70½(orafterdeath)

• Hardshipdistributions

• ESOPdividends


• Loanstreatedasdeemeddistributions(forexample,loansindefaultduetomissedpaymentsbeforeyouremploymentends)


• Paymentsofcertainautomaticenrollmentcontributionsrequestedtobewithdrawnwithin90daysofthefirstcontribution

• AmountstreatedasdistributedbecauseofaprohibitedallocationofScorporationstockunderanESOP(also,therewillgenerally be adverse tax consequences if S corporation stock is held by an IRA)

The Plan administrator or the payor can tell you what portion of a payment is eligible for rollover.

If I don’t do a rollover, will I have to pay the 10% additional income tax on early distributions? If a payment is not a qualified distribution and you are under age 59½, you will have to pay the 10% additional income tax on early distributions with respect to the earnings allocated to the payment that you do not roll over (including amounts withheld for income tax), unless one of the exceptions listed below applies. This tax is in addition to the regular income tax on the earnings not rolled over.


8

The 10% additional income tax does not apply to the following payments from the Plan:

• Paymentsmadeafteryouseparatefromserviceifyouwillbeatleastage55intheyearoftheseparation

• Paymentsthatstartafteryouseparatefromserviceifpaidatleastannuallyinequalorclosetoequalamountsoveryour life or life expectancy (or the lives or joint life expectancy of you and your beneficiary)

• Paymentsmadeduetodisability

• Paymentsafteryourdeath

• PaymentsofESOPdividends



• Paymentsmadedirectlytothegovernmenttosatisfyafederaltaxlevy

• Paymentsmadeunderaqualifieddomesticrelationsorder(QDRO)

• Paymentsuptotheamountofyourdeductiblemedicalexpenses

• Certainpaymentsmadewhileyouareonactivedutyifyouwereamemberofareservecomponentcalledtodutyafter September 11, 2001 for more than 179 days

• Paymentsofcertainautomaticenrollmentcontributionsrequestedtobewithdrawnwithin90daysofthefirstcontribution.

If I do a rollover to a Roth IRA, will the 10% additional income tax apply to early distributions from the IRA?

If you receive a payment from a Roth IRA when you are under age 59½, you will have to pay the 10% additional income tax on early distributions on the earnings paid from the Roth IRA, unless an exception applies or the payment is a qualified distribution. In general, the exceptions to the 10% additional income tax for early distributions from a Roth IRA listed above are the same as the exceptions for early distributions from a plan. However, there are a few differences for payments from a Roth IRA, including:

• Thereisnospecialexceptionforpaymentsafterseparationfromservice.

• Theexceptionforqualifieddomesticrelationsorders(QDROs)doesnotapply(althoughaspecialruleappliesunderwhich, as part of a divorce or separation agreement, a tax-free transfer may be made directly to a Roth IRA of aspouse or former spouse).

• Theexceptionforpaymentsmadeatleastannuallyinequalorclosetoequalamountsoveraspecifiedperiodapplies without regard to whether you have had a separation from service.

• Thereareadditionalexceptionsfor(1)paymentsforqualifiedhighereducationexpenses,(2)paymentsupto$10,000usedinaqualifiedfirst-timehomepurchase,and(3)paymentsforhealthinsurancepremiumsafteryouhave received unemployment compensation for 12 consecutive weeks (or would have been eligible to receiveunemployment compensation but for self-employed status).

Will I owe State income taxes? This notice does not describe any State or local income tax rules (including withholding rules).

SPECIAL RULES AND OPTIONS

If you miss the 60-day rollover deadline Generally, the 60-day rollover deadline cannot be extended. However, the IRS has the limited authority to waive the deadline under certain extraordinary circumstances, such as when external events prevented you from completing the rollover by the 60-day rollover deadline. To apply for a waiver, you must file a private letter ruling request with the IRS. Private letter ruling requests require the payment of a nonrefundable user fee. For more information, see IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs).


9

If your payment includes employer stock that you do not roll over If you receive a payment that is not a qualified distribution and you do not roll it over, you can apply a special rule to payments of employer stock (or other employer securities) that are paid in a lump sum after separation from service (or after age 59½, disability, or the participant’s death). Under the special rule, the net unrealized appreciation on the stock included in the earnings in the payment will not be taxed when distributed to you from the Plan and will be taxed at capital gain rates when you sell the stock. If you do a rollover to a Roth IRA for a nonqualified distribution that includes employer stock (for example, by selling the stock and rolling over the proceeds within 60 days of the distribution), you will not have any taxable income and the special rule relating to the distributed employer stock will not apply to any subsequent payments from the Roth IRA or employer plan. Net unrealized appreciation is generally the increase in the value of the employer stock after it was acquired by the Plan. The Plan administrator can tell you the amount of any net unrealized appreciation.

If you receive a payment that is a qualified distribution that includes employer stock and you do not roll it over, your basis in the stock (used to determine gain or loss when you later sell the stock) will equal the fair market value of the stock at the time of the payment from the Plan.

If you have an outstanding loan that is being offsetIf you have an outstanding loan from the Plan, your Plan benefit may be offset by the amount of the loan, typically when your employment ends. The loan offset amount is treated as a distribution to you at the time of the offset and, if the distribution is a nonqualified distribution, the earnings in the loan offset will be taxed (including the 10% additional income tax on early distributions, unless an exception applies) unless you do a 60-day rollover in the amount of the earnings in the loan offset to a Roth IRA or designated Roth account in an employer plan.

If you receive a nonqualified distribution and you were born on or before January 1, 1936 If you were born on or before January 1, 1936, and receive a lump sum distribution that is not a qualified distribution and that you do not roll over, special rules for calculating the amount of the tax on the earnings in the payment might apply to you. For more information, see IRS Publication 575, Pension and Annuity Income.

If you receive a nonqualified distribution, are an eligible retired public safety officer, and your pension payment is used to pay for health coverage or qualified long-term care insurance If the Plan is a governmental plan, you retired as a public safety officer, and your retirement was by reason of disability or was after normal retirement age, you can exclude from your taxable income nonqualified distributions paid directly as premiums to an accident or health plan (or a qualified long-term care insurance contract) that your employer maintains for you,yourspouse,oryourdependents,uptoamaximumof$3,000annually.Forthispurpose,apublicsafetyofficerisalawenforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew.

If you are not a plan participant Payments after death of the participant. If you receive a distribution after the participant’s death that you do not roll over, the distribution will generally be taxed in the same manner described elsewhere in this notice. However, whether the payment is a qualified distribution generally depends on when the participant first made a contribution to the designated Roth account in the Plan. Also, the 10% additional income tax on early distributions and the special rules for public safety officers do not apply, and the special rule described under the section “If you receive a nonqualified distribution and you were born on or before January 1, 1936” applies only if the participant was born on or before January 1, 1936.

If you are a surviving spouse. If you receive a payment from the Plan as the surviving spouse of a deceased participant, you have the same rollover options that the participant would have had, as described elsewhere in this notice. In addition, if you choose to do a rollover to a Roth IRA, you may treat the Roth IRA as your own or as an inherited Roth IRA.


10

A Roth IRA you treat as your own is treated like any other Roth IRA of yours, so that you will not have to receive any required minimum distributions during your lifetime and earnings paid to you in a nonqualified distribution before you are age 59½ will be subject to the 10% additional income tax on early distributions (unless an exception applies).

If you treat the Roth IRA as an inherited Roth IRA, payments from the Roth IRA will not be subject to the 10% additional income tax on early distributions. An inherited Roth IRA is subject to required minimum distributions. If the participant had started taking required minimum distributions from the Plan, you will have to receive required minimum distributions from the inherited Roth IRA. If the participant had not started taking required minimum distributions, you will not have to start receiving required minimum distributions from the inherited Roth IRA until the year the participant would have been age 70½.

If you are a surviving beneficiary other than a spouse. If you receive a payment from the Plan because of the participant’s death and you are a designated beneficiary other than a surviving spouse, the only rollover option you have is to do a direct rollover to an inherited Roth IRA. Payments from the inherited Roth IRA, even if made in a nonqualified distribution, will not be subject to the 10% additional income tax on early distributions. You will have to receive required minimum distributions from the inherited Roth IRA.

Payments under a qualified domestic relations order. If you are the spouse or a former spouse of the participant who receives a paymentfromthePlanunderaqualifieddomesticrelationsorder(QDRO),yougenerallyhavethesameoptionstheparticipantwould have (for example, you may roll over the payment as described in this notice).

If you are a nonresident alien If you are a nonresident alien and you do not do a direct rollover to a U.S. IRA or U.S. employer plan, instead of withholding 20%, the Plan is generally required to withhold 30% of the payment for federal income taxes. If the amount withheld exceeds the amount of tax you owe (as may happen if you do a 60-day rollover), you may request an income tax refund by filing Form1040NRandattachingyourForm1042-S.SeeFormW-8BENforclaimingthatyouareentitledtoareducedrateofwithholding under an income tax treaty. For more information, see also IRS Publication 519, U.S. Tax Guide for Aliens, and IRS Publication515,WithholdingofTaxonNonresidentAliensandForeignEntities.

Other special rules If a payment is one in a series of payments for less than 10 years, your choice whether to make a direct rollover will apply to all later payments in the series (unless you make a different choice for later payments).Ifyourpaymentsfortheyear(onlyincludingpaymentsfromthedesignatedRothaccountinthePlan)arelessthan$200,thePlan is not required to allow you to do a direct rollover and is not required to withhold for federal income taxes. However, you can do a 60-day rollover.

Unlessyouelectotherwise,amandatorycashoutfromthedesignatedRothaccountinthePlanofmorethan$1,000willbedirectly rolled over to a Roth IRA chosen by the Plan administrator or the payor. A mandatory cashout is a payment from a plan to a participant made before age 62 (or normal retirement age, if later) and without consent, where the participant’s benefit doesnotexceed$5,000(notincludinganyamountsheldundertheplanasaresultofapriorrollovermadetotheplan).

You may have special rollover rights if you recently served in the U.S. Armed Forces. For more information, see IRS Publication 3, Armed Forces’ Tax Guide.

FOR MORE INFORMATION

You may wish to consult with the Plan administrator or payor, or a professional tax advisor, before taking a payment from the Plan. Also, you can find more detailed information on the federal tax treatment of payments from employer plans in: IRS Publication 575, Pension and Annuity Income; IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs); IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs); and IRS Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans). These publications are available from a local IRS office, on the web at www.irs.gov, or by calling 1-800-TAX-FORM.


distribution packet - oregonjan 13, 2017 · 403(b) or an ira, you may inherit some of those...

Documents