FAQ's

9. ARE TAXES WITHHELD FROM MY QUALIFIED SAVINGS PLAN BENEFIT?

·        Contributions made by your employer to the Qualified Savings Plan are pre-tax contributions; taxes will generally be due when you receive your benefit distribution.

·        Generally, all lump sum payments over $200 are subject to 20% Federal withholding tax.  The Fund withholds and pays this Federal tax from your benefit before you receive your distribution check.

·        If you are requesting a direct rollover to another qualified plan, the Fund does not withhold Federal tax from the direct rollover payment.  (You should check with your tax advisor regarding tax on direct rollovers to a Roth IRA.)

·        The Fund does not withhold state or local taxes from your benefit distribution.  You should contact a tax professional for more information about state and local taxes that might affect you.

·        The Fund does not withhold any tax penalties that might be imposed under IRS regulations. You should review the Special Tax Notices which are included in the Application materials before applying for your Qualified Savings Benefit.

·        You may direct the Fund to withhold additional Federal tax by submitting an IRS Form W-4P with your Application.  Please visit the IRS website at www.irs.gov for more information, or contact the Fund office.

·        You will receive a 1099-R tax statement, in January of the year following your distribution date, showing the amount of your distribution and the amount of Federal tax withheld and reported by the Fund.