Death Benefit Claim (Page 12 of 13) in pdf

What are the restrictions on the amount I can rollover?

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:

Certain payments spread over a period of at least 10 years or over your life or life expectancy (or the lives or joint life expectancy of you and

your beneficiary)

Required minimum distributions after age 70½ (or after death)

Unforeseeable Emergency Withdrawals

Corrective distributions of contributions that exceed tax law limitations

Contributions made under special automatic enrollment rules that are withdrawn pursuant to your request within 90 days of enrollment

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

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:

There is no exception for payments after separation from service that are made after age 55.

The exception for qualified domestic relations orders (QDROs) does not apply (although a special rule applies under which, as part of a

divorce or separation agreement, a tax-free transfer may be made directly to an IRA of a spouse or former spouse).

The exception for payments made at least annually in equal or close to equal amounts over a specified period applies without regard to

whether you have had a separation from service.

There are additional exceptions for (1) payments for qualified higher education expenses, (2) payments up to $10,000 used in a qualified

first-time home purchase, and (3) payments after you have received unemployment compensation for 12 consecutive weeks (or would have

been eligible to receive unemployment 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). If you live in a state that mandates state income tax

withholding, state taxes will be withheld on payments made directly to you. Refer to the instructions accompanying your plan distribution form for

more information.

SPECIAL RULES AND OPTIONS

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

If you are receiving a distribution from you 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 regardless of the distribution method

you choose, you will not have to pay the 10% additional income tax on early distributions from the Plan even if you are under age 59½. 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 roll over if the payment is due to

an unforeseeable emergency, or an eligible automatic contribution arrangement ( EACA ) distribution related to automatic enrollment.

If your payment includes after-tax contributions:

After-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 generally included in the payment. 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.

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 a portion is paid to you, each of the payments will include an allocable

portion of the after-tax contributions. If you do a 60-day rollover to an IRA of only a portion of the payment made to you, the after-tax contributions are

treated as rolled over last. For example, assume you are receiving a complete distribution of your benefit which totals $12,000, of which $2,000 is after-

tax contributions. In this case, if you roll over $10,000 to an IRA in a 60-day rollover, no amount is taxable because the $2,000 amount not rolled over

is treated as being after-tax contributions.

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 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, Individual Retirement Arrangements (IRAs).

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Page 7 of 8 Guide

Benefit Claim_12.30.10

Death Benefit Claim Page 12

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