Distributions If you terminate employment for any reason, your vested Account balance attributable to the ESOP Portion of the Plan will be distributed in a single sum payment or in substantially equal annual installments over a period not to exceed 5 years. The 5-year period may be extended up to 5 years for accounts whose value for calendar year 2026 exceeds $1,455,000, or 5 years plus 1 additional year (but not more than 5 additional years) for each $290,000 or fraction thereof by which your ESOP Portion of the Plan account exceeds $1,455,000. The dollar amounts in the preceding sentence are adjusted annually by the IRS. If you terminate employment because you reach Normal Retirement Age, because you become Disabled, or because you die, then distribution of your vested Account balance attributable to the ESOP Portion of the Plan will begin no later than one year after the close of the Plan Year in which you terminate employment unless you are able to elect otherwise. If you terminate employment for any reason other than retirement on or after reaching Normal Retirement Age, death or Disability, and you are not reemployed by the Company at the end of the fifth Plan Year following the Plan Year in which you terminated, then distribution of your vested Account attributable to the ESOP Portion of the Plan must begin no later than one year after the close of the fifth Plan Year following the Plan Year in which you terminated employment. However, if you are reemployed by the Company as of the last day of the fifth Plan Year following the Plan Year in which you terminated, distribution of your vested Account attributable to the ESOP Portion of the Plan will be postponed until you are otherwise entitled to a distribution under the Plan. Your vested Account attributable to the ESOP Portion of the Plan will generally be distributed in the form of Company Stock. However, if the stock is not readily tradable, you can sell it back to us at its current fair market value during the 60-day period immediately following the distribution (or during an additional 60-day period in the year following the distribution). Additional Distribution Information Distributions for Reasons Other Than Death In addition to the payments described above, there are rules which require that certain minimum distributions be made from the Plan. Generally, these minimum distributions must begin no later than (a) the April 1st following the end of the calendar year in which you reach age 70½ or (b) the April 1st following the end of the calendar year in which you retire. However, if you are a 5% owner, you must begin receiving these distributions by the April 1st following the end of the calendar year in which you reach age 70½ even if you are still employed by the Employer. For Participants who attain age 70½ in calendar year 2020, age 70½ is increased to age 72. For Participants who attain age 72 in calendar year 2023, age 72 is increased to age 73. Distributions Upon Death Your vested Account attributable to the Non-ESOP Portion of the Plan will be distributed to your beneficiary as soon as administratively feasible after your death. If you are not married, you can name anyone to be your beneficiary. If you are married, your Spouse by law is your beneficiary unless he or she waives the death benefit in writing. Your beneficiary can elect to receive a single sum payment. If your death occurs before the date minimum distributions must begin (as described in the preceding section), the distribution to your beneficiary must be made within certain legal timeframes that are dependent upon several factors, including (a) whether you have a designated beneficiary, (b) your relationship to the beneficiary (spousal or non-spousal beneficiary), and (c) certain elections that your beneficiary may make after your death. However, if your death occurs after the date that minimum distributions must begin, the minimum death benefit that must be paid to your beneficiary each year after your death is based on the longer of your remaining life expectancy (had you survived) or the remaining life expectancy of your beneficiary. Your beneficiary may also choose to accelerate the payment rate. Contact the Administrator for more information regarding payments to beneficiaries.
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