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December 27, 2016 | Print | Site Map | Help

Annuity Plan

Notice of Early Distribution Penalty

The law known as the Tax Reform Act of 1986 places a 10% penalty upon early distributions from the Annuity Plan, effective January 1, 1987. This tax is in addition to any income tax due. Unless a Participant meets the requirements of the exceptions shown below, any lump sum payment of his Accumulated Share following a separation from service that occurs before the Participant reaches 59½ shall be subject to this additional tax. The following distributions made prior to age 59½ are exempt from the early distribution penalty.

  1. Payment in the form of a life annuity (including a joint and survivor annuity) following separation from service;
  2. Payment to a Participant who is at least age 55 made in accordance with the Plan’s early retirement provisions;
  3. Payment made due to a Participant’s death or disability, or to an alternate payee as decreed by a qualified domestic relations order; or
  4. Payment made to a Participant used to pay medical expenses otherwise deductible under Internal Revenue Code Section 213.

In order to determine if this change applies to you, it is best to seek the advice of a tax professional. If you have questions about this information in general, you may contact the Fund Office for assistance.

References to specific section(s) of the Plan can be found in the Official Plan Document under Plan Documents on this website.

Contact Plan Administrator

Telephone NumberPhone:
(866) 894-3705


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