Form Std Fspsrv - Separation From Employment Withdrawal Request 401(A) Plan (Page 13 of 14) in pdf

tax contributions. In this case, if you directly roll over $10,000 to an IRA

If you are an eligible retired public safety officer and your pension

that is not a Roth IRA, no amount is taxable because the $2,000 amount

payment is used to pay for health coverage or qualified long-term care

not directly rolled over is treated as being after-tax contributions. If you do

insurance

a direct rollover of the entire amount paid from the Plan to two or more

If the Plan is a governmental plan, you retired as a public safety officer, and

destinations at the same time, you can choose which destination receives

your retirement was by reason of disability or was after normal retirement

the after-tax contributions.

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

If you do a 60-day rollover to an IRA of only a portion of the payment made to

insurance contract) that your employer maintains for you, your spouse, or

you, the after-tax contributions are treated as rolled over last. For example,

your dependents, up to a maximum of $3,000 annually. For this purpose,

assume you are receiving a distribution of $12,000, of which $2,000 is after-

a public safety officer is a law enforcement officer, firefighter, chaplain, or

tax contributions, and no part of the distribution is directly rolled over. In this

member of a rescue squad or ambulance crew.

case, if you roll over $10,000 to an IRA that is not a Roth IRA in a 60-day

rollover, no amount is taxable because the $2,000 amount not rolled over is

If you roll over your payment to a Roth IRA

treated as being after-tax contributions.

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-

You may roll over to an employer plan all of a payment that includes after-tax

tax amounts) will be taxed. However, the 10% additional income tax on early

contributions, but only through a direct rollover (and only if the receiving plan

distributions will not apply (unless you take the amount rolled over out of the

separately accounts for after-tax contributions and is not a governmental

Roth IRA within 5 years, counting from January 1 of the year of the rollover).

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

If you roll over the payment to a Roth IRA, later payments from the Roth IRA

amount of the payment that would be taxable if not rolled over.

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

If you miss the 60-day rollover deadline

you are age 59½ (or after your death or disability, or as a qualified first-time

Generally, the 60-day rollover deadline cannot be extended. However,

homebuyer distribution of up to $10,000) and after you have had a Roth IRA

the IRS has the limited authority to waive the deadline under certain

for at least 5 years. In applying this 5-year rule, you count from January 1 of

extraordinary circumstances, such as when external events prevented you

the year for which your first contribution was made to a Roth IRA. Payments

from completing the rollover by the 60-day rollover deadline. To apply for

from the Roth IRA that are not qualified distributions will be taxed to the

a waiver, you must file a private letter ruling request with the IRS. Private

extent of earnings after the rollover, including the 10% additional income

letter ruling requests require the payment of a nonrefundable user fee. For

tax on early distributions (unless an exception applies). You do not have to

more information, see IRS Publication 590-A, Contributions to Individual

take required minimum distributions from a Roth IRA during your lifetime.

Retirement Arrangements (IRAs).

For more information, see IRS Publication 590-A, Contributions to Individual

If your payment includes employer stock that you do not roll over

Retirement Arrangements (IRAs) and IRS Publication 590-B, Distributions

If you do not do a rollover, you can apply a special rule to payments of

from Individual Retirement Arrangements (IRAs).

employer stock (or other employer securities) that are either attributable to

If you do a rollover to a designated Roth account in the Plan

after-tax contributions or paid in a lump sum after separation from service

You cannot roll over a distribution to a designated Roth account in

(or after age 59½, disability, or the participant’s death). Under the special

another employer’s plan. However, you can roll the distribution over into a

rule, the net unrealized appreciation on the stock will not be taxed when

designated Roth account in the distributing Plan. If you roll over a payment

distributed from the Plan and will be taxed at capital gain rates when you sell

from the Plan to a designated Roth account in the Plan, the amount of the

the stock. Net unrealized appreciation is generally the increase in the value

payment rolled over (reduced by any after-tax amounts directly rolled over)

of employer stock after it was acquired by the Plan. If you do a rollover for a

will be taxed. However, the 10% additional tax on early distributions will not

payment that includes employer stock (for example, by selling the stock and

apply (unless you take the amount rolled over out of the designated Roth

rolling over the proceeds within 60 days of the payment), the special rule

account within the 5-year period that begins on January 1 of the year of the

relating to the distributed employer stock will not apply to any subsequent

rollover).

payments from the IRA or employer plan. The Plan administrator can tell

you the amount of any net unrealized appreciation.

If you roll over the payment to a designated Roth account in the Plan,

later payments from the designated Roth account that are qualified

If you have an outstanding loan that is being offset

distributions will not be taxed (including earnings after the rollover). A

If you have an outstanding loan from the Plan, your Plan benefit may be

qualified distribution from a designated Roth account is a payment made

offset by the amount of the loan, typically when your employment ends.

both after you are age 59½ (or after your death or disability) and after you

The loan offset amount is treated as a distribution to you at the time of the

have had a designated Roth account in the Plan for at least 5 years. In

offset and will be taxed (including the 10% additional income tax on early

applying this 5-year rule you count from January 1 of the year your first

distributions, unless an exception applies) unless you do a 60-day rollover

contribution was made to the designated Roth account. However, if you

in the amount of the loan offset to an IRA or employer plan.

made a direct rollover to a designated Roth account in the Plan from a

If you were born on or before January 1, 1936

designated Roth account in a plan of another employer, the 5-year period

If you were born on or before January 1, 1936 and receive a lump sum

begins on January 1 of the year you made the first contribution to the

distribution that you do not roll over, special rules for calculating the amount

designated Roth account in the Plan or, if earlier, to the designated Roth

of the tax on the payment might apply to you. For more information, see IRS

account in the plan of the other employer. Payments from the designated

Publication 575, Pension and Annuity Income.

Roth account that are not qualified distributions will be taxed to the extent of

If your payment is from a governmental section 457(b) plan

earnings after the rollover, including the 10% additional income tax on early

If the Plan is a governmental section 457(b) plan, the same rules described

distributions (unless an exceptions applies).

elsewhere in this notice generally apply, allowing you to roll over the

If you are not a plan participant

payment to an IRA or an employer plan that accepts rollovers. One

Payments after death of the participant. If you receive a distribution after the

difference is that, if you do not do a rollover, you will not have to pay

participant’s death that you do not roll over, the distribution will generally be

the 10% additional income tax on early distributions from the Plan even if

taxed in the same manner described elsewhere in this notice. However, the

you are under age 59½ (unless the payment is from a separate account

10% additional income tax on early distributions and the special rules for

holding rollover contributions that were made to the Plan from a tax-qualified

public safety officers do not apply, and the special rule described under the

plan, a section 403(b) plan, or an IRA). However, if you do a rollover to

section “If you were born on or before January 1, 1936” applies only if the

an IRA or to an employer plan that is not a governmental section 457(b)

participant was born on or before January 1, 1936.

plan, a later distribution made before age 59½ will be subject to the 10%

If you are a surviving spouse. If you receive a payment from the

additional income tax on early distributions (unless an exception applies).

Plan as the surviving spouse of a deceased participant, you have the

Other differences are that you cannot do a rollover if the payment is due to

same rollover options that the participant would have had, as described

an “unforeseeable emergency” and the special rules under “If your payment

elsewhere in this notice. In addition, if you choose to do a rollover

includes employer stock that you do not roll over” and “If you were born on

to an IRA, you may treat the IRA as your own or as an inherited

or before January 1, 1936” do not apply.

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

NO_GRPG 56767/

GU22

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STD FSPSRV

07/31/17

98721-01

WITHDRAWAL

DOC ID: 492627235

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Page 13 of 14

Form Std Fspsrv - Separation From Employment Withdrawal Request 401(A) Plan Page 13

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