How are my benefits taxed?
Whenever you receive a distribution from the
Plan, it will normally be subject to federal income taxes.
However, if you or your surviving spouse
receive a single sum payment, you may request that a direct transfer of all or
a portion of the distribution be made to either an Individual Retirement
Account (IRA) or another qualified retirement plan willing to accept the transfer.
A direct transfer will result in no tax being
due or withheld until you withdraw funds from the IRA or other qualified plan.
Whenever you receive a distribution that is
eligible for a direct rollover, the Fund Office will deliver to you a more
detailed explanation of this option.
Before you receive a distribution from the Plan, you should consult your
tax advisor concerning your tax liability.
Information will be given to you concerning withholding of income tax
when you apply for your annuity benefit.
|
