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Click here or scroll down to respond to this candidateUpdated August 4, 2023, for Select SECURE 2.0 Provisions
SPECIAL TAX NOTICE
YOUR ROLLOVER OPTIONS
You are receiving this notice because all or a portion of a payment you are receiving from the Plan is eligible to be rolled over to
either an IRA or an employer plan; or if your payment is from a designated Roth account, to a Roth IRA or designated Roth
account in 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. To the extent that the rules differ based on whether
the payment is from a Designated Roth Account or from an account that is Not a Designated Roth Account, those differences will
be identified in each section of this notice.
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?
Not a Designated Roth Account:
You will be taxed on a payment from the Plan if you do not roll it over. If you are under age 59 and do not do a
rollover, you will also have to pay a 10% additional income tax on early distributions (generally, distributions made
before age 59 ), 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 59 (or if an exception to the 10% additional income tax applies). If you do a rollover to a Roth IRA, any
amounts not previously included in your income will be taxed currently (see the section below titled "If you roll
over your payment to a Roth IRA (Not a Designated Roth Account)").
Designated Roth Account:
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 portion of the payment that is earnings. If you
are under age 59 , a 10% additional income tax on early distributions (generally, distributions made before age
59 ) 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 59 (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.
What types of retirement accounts and plans may accept my rollover?
Not a Designated Roth Account:
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, IRAs are not subject
to spousal consent rules, 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.
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Designated Roth Account:
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, section 403(b) plan, or
governmental section 457 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, Roth IRAs are not subject to spousal consent rules, 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:
If you do a rollover to a Roth IRA, all of your Roth IRAs will be considered for purposes of determining whether
you have satisfied the 5-year rule (counting from January 1 of the year for which your first contribution was made
to any of your Roth IRAs).
If you do a rollover to a Roth IRA, you will not be required to take a distribution from the Roth IRA during your
lifetime and you must keep track of the aggregate amount of the after-tax contributions in all of your Roth IRAs (in
order to determine your taxable income for later Roth IRA payments that are not qualified distributions).
Eligible rollover distributions from a Roth IRA can only be rolled over to another Roth IRA.
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, or if your payment is
from a designated Roth account, to your Roth IRA or designated Roth account in an employer plan. You should contact
the IRA or Roth IRA custodian 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 according to the rules
below:
Not a Designated Roth Account:
You may still do a rollover by making a deposit into an IRA or eligible employer plan that will accept it.
Generally, 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 taxable 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 59 (unless an exception applies).
Designated Roth Account:
You may still do a rollover by making a deposit (generally 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 59 (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:
Certain payments spread over a period of at least 10 years or over your life or life expectancy (or the joint lives or
joint life expectancies of you and your beneficiary);
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Required minimum distributions;
Hardship distributions;
Payments of employee stock ownership plan (ESOP) dividends;
Corrective distributions of contributions that exceed tax law limitations;
Loans treated as deemed distributions (for example, loans in default due to missed payments before your
employment ends);
Cost of life insurance paid by the Plan;
Payments of certain automatic enrollment contributions that you request to withdraw within 90 days of your first
contribution;
Amounts treated as distributed because of a prohibited allocation of S corporation stock under an ESOP (also,
there generally will be adverse tax consequences if you roll over a distribution of S corporation stock to an IRA);
and
Distributions of certain premiums for health and accident insurance.
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 59 , 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 applies to the part of the distribution that you must include in income and 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:
Payments made after you separate from service if you will be at least age 55 in the year of the separation;
Payments that start after you separate from service if paid at least annually in equal or close to equal amounts over
your life or life expectancy (or the joint lives or joint life expectancies of you and your beneficiary);
Payments from a governmental plan made after you separate from service if you are a qualified public safety
employee and you are at least age 50 in the year of the separation;
Payments made due to disability;
Payments after your death;
Payments of ESOP dividends;
Corrective distributions of contributions that exceed tax law limitations;
Cost of life insurance paid by the Plan;
Payments made directly to the government to satisfy a federal tax levy;
Payments made under a qualified domestic relations order (QDRO);
Payments of up to $5,000 made to you from a defined contribution plan if the payment is a qualified birth or
adoption distribution;
Payments up to the amount of your deductible medical expenses (without regard to whether you itemize
deductions for the taxable year);
Certain payments made while you are on active duty if you were a member of a reserve component called to duty
after September 11, 2001 for more than 179 days;
Payments of certain automatic enrollment contributions that you request to withdraw within 90 days of your first
contribution;
Payments excepted from the additional income tax by federal legislation relating to certain emergencies and
disasters;
Phased retirement payments made to federal employees;
Payments from a retirement plan subject to the 401(a), 403(b) or 403(b) requirements to a qualified public safety
employee who provides firefighting services (even if you are not employed in the public sector); a public safety
officer, or a corrections officer, after the employee separates from service after attaining age 50, or if the employee
has more than 25 years of service under the Plan;
Eligible payment from a retirement plan to an employee after the date certified by a physician that the employee
has a terminal illness or physical condition that can reasonably be expected to result in death in 84 or fewer
months;
Qualified disaster recovery distributions up to $22,000 due to a federally declared disaster made after January 26,
2021, to an individual who has a principal place of abode in a qualified disaster area during the relevant disaster
and sustains an economic loss because of the disaster;
Eligible payments of up to $10,000 to a domestic abuse victim that are made within one year of the date on which
the individual is a victim of domestic abuse by a spouse or domestic partner. This exception is available only for
payments made on or after January 1, 2024;
Payment from a qualified retirement plan, other than a defined benefit plan, once per year in the amount of up to
$1,000, to an individual for emergency personal or family emergency expenses due to unforeseeable or immediate
financial needs. This exception is available only for payments made on or after January 1, 2024;
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Payments from a retirement plan subject to the 401(a), 403(b) or 403(b) requirements to an eligible participant
from a pension-linked emergency savings account (PLESA). This exception is available only for payments made
on or after January 1, 2024; and
Payments of premiums for certified long-term care insurance for the employee, his/her spouse or eligible family
members subject to the annual limit, the lesser of the amount paid for the coverage or 10% of the employee s
vested account balance in the plan, or $2,500 (as indexed). This exception is available only for payments made
after December 29, 2025.
If I do a rollover to an IRA (including a Roth IRA), will the 10% additional income tax apply to early distributions
from the IRA?
If you receive a payment from an IRA (including a Roth IRA) when you are under age 59 , you will have to pay the
10% additional income tax on early distributions on the part of the distribution that you must include in income, 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:
The exception for payments made after you separate from service if you will be at least age 55 in the year of
separation (or age 50 for qualified public safety employees) does not apply;
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); and
The exception for payments made at least annually in equal or close to equal amounts over a sp ecified period
applies without regard to whether you have had a separation from service.
Additional exceptions apply for payments from an IRA, including:
Payments for qualified higher education expenses;
Payments up to $10,000 used in a qualified first-time home purchase; and
Payments for health insurance premiums after you have received unemployment compensation for 12 consecutive
weeks (or would have been eligible to receive unemployment compensation but for self-employed status).
Payments of net income attributable to an excess IRA contribution made in a calendar year where such amounts
are distributed by tax return deadline for the year (including extensions) and no deduction is allowed for the excess
contribution.
Can I rollover an existing annuity investment in a defined contribution plan that is no longer offering an annuity option?
Yes, you may request a direct rollover of your annuity investment to another employer-sponsored retirement plan (that
accepts an annuity) or to an IRA. You may instead request a distribution of the annuity investment in the form of a
qualified plan distribution annuity. The direct rollover option is permissible regardless of whether or not the distribution is
permitted under the Plan that is ceasing to offer it.
Will I owe State income taxes?
This notice does not address any State or local income tax rules (including withholding rules).
SPECIAL RULES AND OPTIONS
If your payment includes after-tax contributions (Not a Designated Roth Account)
After-tax contributions included in a payment are not taxed. If you receive a partial payment of your total 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 the 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 rolled over consists first of the amount
that would be taxable if not rolled over. For example, assume you are receiving a distribution of $12,000, of which
$2,000 is after-tax contributions. In this case, if you directly roll over $10,000 to an IRA that is not a Roth IRA, no
amount is taxable because the $2,000 amount not 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.
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Similarly, if you do a 60-day rollover to an IRA of only a portion of a payment made to you, the portion rolled over
consists first of the amount that would be taxable if not rolled over. For example, assume you are receiving a distribution
of $12,000, of which $2,000 is after-tax contributions, and no part of the distribution is directly rolled over. In this 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 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. Under certain circumstances, you may claim eligibility for a waiver of the 60-day
rollover deadline by making a written self-certification. Otherwise, to apply for a waiver from the IRS, you must file a
private letter ruling request with the IRS. Private letter ruling requests require the payment of a nonrefundable use r fee.
For more information, see IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs).
If your payment includes employer stock that you do not roll over
Not a Designated Roth Account:
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 59 , 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, generally, the Plan. The Plan administrator can
tell you the amount of any net unrealized appreciation.
Designated Roth Account:
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 59 , 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, generally, the
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 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 offset amount is treated as a distribution to you at the time of the offset. Generally, you may
roll over all or any portion of the offset amount.
How long you have to complete the rollover depends on what kind of plan loan offset you have. If you have a qualified
plan loan offset, you will have until your tax return due date (including extensions) for the tax year during which the
offset occurs to complete your rollover. A qualified plan loan offset occurs when a plan loan in good standing is offset
because your employer plan terminates, or because you sever from employment. If your plan loan offset occurs for any
other reason (such as failure to make level repayments that results in a deemed distribution), then you have 60 days from
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the date the offset occurs to complete your rollover.
Not a Designated Roth Account:
Any offset amount that is not rolled over will be taxed (including the 10% additional income tax on early
distributions, unless an exception applies). You may roll over offset amounts to an IRA or an employer plan (if
the terms of the employer plan permit the plan to receive plan loan offset rollovers).
Designated Roth Account:
If the distribution attributable to the offset is not a qualified distribution and you do not roll over the offset
amount, you will be taxed on any earnings included in the distribution (including the 10% additional income tax
on early distributions, unless an exception applies). You may roll over the earnings included in the loan offset to a
Roth IRA or designated Roth account in an employer plan (if the terms of the employer plan permit the plan to
receive plan loan offset rollovers). You may also roll over the full amount of the offset to a Roth IRA.
If 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 Roth
distribution and that you do not roll over, special rules for calculating the amount of the tax on the taxable portion of the
payment might apply to you. For more information, see IRS Publication 575, Pension and Annuity Income.
If your payment is from a governmental section 457(b) plan
If 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 59 (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 59 will be subject to
the 10% additional income tax on early distributions (unless an exception applies). Other differences include 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 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 Plan payments or, in the case of a
payment from a designated Roth account, nonqualified distributions, paid as premiums to an accident or health plan (or a
qualified long-term care insurance contract) that your employer maintains for you, your spouse, or your dependents, up to
a maximum of $3,000 annually. For this purpose, a public safety officer is a law enforcement officer, firefighter,
chaplain, or member of a rescue squad or ambulance crew.
If you roll over your payment to a Roth IRA (Not a Designated Roth Account)
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. In general, the 10% additional income tax on early
distributions will not apply. However, if you take the amount rolled over out of the Roth IRA within the 5-year period
that begins on January 1 of the year of the rollover, the 10% additional income tax will apply (unless an exception
applies).
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 59 (or after your death or disability, or as a qualified first-time homebuyer distribution of up to $10,000) and after
you have had a Roth 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 lifetim e.
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).
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If you do a rollover to a designated Roth account in the Plan
You cannot roll over a payment from the Plan that is not from a designated Roth account to a designated Roth account in
another employer plan. However, you can roll the distribution over into a designated Roth account in the distributing
Plan. If you roll over a payment from the Plan to a designated Roth account in the Plan, the amount of the payment rolled
over (reduced by any after-tax amounts directly rolled over) will be taxed. In general, the 10% additional income tax on
early distributions will not apply. However, if you take the amount rolled over out of the designated Roth account within
the 5-year period that begins on January 1 of the year of the rollover, the 10% additional income tax will apply (unless an
exception applies).
If you roll over the payment to a designated Roth account in the Plan, later payments from the designated Roth account
that are qualified distributions will not be taxed (including earnings after the rollover). See the section titled "Designate d
Roth Account" under the heading "General Information About Rollovers , above, for more information on qualified
distributions.
Your plan may provide for a special withdrawal option which is only available if you are electing an in-plan Roth
conversion, in which case the other rollover information in this notice is not applicable to that withdrawal.
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 generally will 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
deceased participant was born on or before January 1, 1936.
If the payment is from a designated Roth account, 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.
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.
Not a Designated Roth Account:
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 59 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 70 (if
you were born before July 1, 1949), age 72 (if you were born after June 30, 1949), or after age 73 (if you were
born on or after January 1, 1950. 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 attained age 70 (if the participant was born before July 1, 1949), age 72 (if the participant was born after
June 30, 1949), or the later of the year that the participant would have attained age 73 (if the participant was
born on or after January 1, 1950), or the year that you attain age 73 (if you attained age 72 on or after January
1, 2023).
Designated Roth Account:
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. 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 59 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
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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 attained age 70 (if the participant was born
before July 1, 1949), age 72 (if the participant was born after June 30, 1949), or the later of the year that the
participant would have attained age 73 (if the participant was born on or after January 1, 1950), or the year that
you attain age 73 (if you attained age 72 on or after January 1, 2023).
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 or, if the payment is from a designated Roth account, a
direct rollover to an inherited Roth IRA. Payments from the inherited IRA, or 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 IRA and/or Roth
IRA.
Payments under a QDRO. If you are the spouse or former spouse of the participant who receives a payment from the Plan
under a QDRO, you generally have the same options and the same tax treatment that the participant would have (for
example, you may roll over the payment to your own IRA, Roth IRA or an eligible employer plan that will accept it).
However, payments under the QDRO will not be subject to the 10% additional income tax on early distributions.
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 Form 1040NR and attaching your Form 1042-S. See Form W-8BEN for claiming that you are entitled to
a reduced rate of withholding under an income tax treaty. For more information, see also IRS Publication 519, U.S. Tax
Guide for Aliens, and IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.
Other special rules
If a payment is one in a series of payments for less than 10 years, your choice whether to do a direct rollover will
apply to all later payments in the series (unless you make a different choice for later payments).
If your payments for the year are less than $200 (payments from designated Roth accounts and from accounts that
are not designated Roth accounts are not aggregated for purposes of the $200 limit), the Plan is not required to
allow you to do a direct rollover and is not required to withhold federal income taxes. However, you may do a 60-
day rollover.
Mandatory Cashout
Not a Designated Roth Account:
Unless you elect otherwise, a mandatory cashout of more than $1,000 (not including payments from a
designated Roth account in the Plan) will be directly rolled over to an IRA chosen by the Plan administrator. 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 does not exceed $5,000 ($7,000 for distributions on or
after January 1, 2024, or other limit as defined by the Plan), including any amounts held under the Plan as a result of
a rollover contribution, unless the Plan excludes rollover contributions. If your Plan administrator has engaged an
auto portability provider for the Plan, your mandatory cashout (including cashouts of $1,000 or less) may be
transferred (unless you elect otherwise) to another retirement plan in which you are eligible. A separate notice will
describe if you are eligible for auto portability and any associated fees.
Designated Roth Account:
Unless you elect otherwise, a mandatory cashout from the designated Roth account in the Plan of more than
$1,000 will be directly rolled over to a Roth IRA chosen by the Plan administrator. 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 does not exceed $5,000 ($7,000 for distributions on or after January 1,
2024, or other limit defined by the Plan), including any amounts held under the Plan as a result of a rollover
contribution, unless the Plan excludes rollover contributions.
You may have special rollover rights if you recently served in the U.S. Armed Forces. For more information on
special rollover rights related to the U.S. Armed Forces, see IRS Publication 3, Armed Forces' Tax Guide. You
also may have special rollover rights if you were affected by a federally declared disaster (or similar event), or
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if you received a distribution on account of a disaster. For more information on special rollover rights related to
disaster relief, see the IRS website at www.irs.gov.
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); 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.
1072040.4.0 Fidelity Investments Institutional Operations Company LLC, 245 Summer St., Boston, MA 02210
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