Any death benefit received by your Spouse can be rolled over to an IRA. A non-Spouse beneficiary may establish a special IRA (an "Inherited IRA") that can receive a direct rollover of all (except for any required minimum distributions) or a portion of the death benefit distributed upon your death to that non-Spouse beneficiary. Certain portions of a death benefit may not be eligible to be rolled over into an Inherited IRA. If you needed to take a required minimum distribution in the year of your death but you had not taken it at the time of your death, then that required minimum distribution cannot be rolled over from the Plan into an Inherited IRA. Similarly, if the non- Spouse beneficiary needs to take any required minimum distribution from the Plan for the year in which the direct rollover occurs (or any prior year), then the non-Spouse beneficiary cannot roll over that required minimum distribution into an Inherited IRA. If the non-Spouse beneficiary elects to roll over the death benefit to an Inherited IRA, then the inherited IRA will be subject to complicated required minimum distribution rules. You should inform your non-Spouse beneficiary that (a) he or she is designated to receive your death benefit, and (b) your death benefit can be rolled over to an Inherited IRA. The non-Spouse beneficiary should discuss any planning issues and tax consequences with their professional tax advisor with respect to a direct rollover of your death benefit into an Inherited IRA. Distribution Policy Distributions are subject to a distribution policy set by the Plan Administrator. Additionally, a terminated participant’s Company Stock may be converted to non-stock assets. A copy of the distribution policy may be requested. Distribution alternatives will be described at the time a distribution is available to you. Cash-Outs of Small Accounts If your employment is terminated for any reason and your Vested Account does not exceed $1,000, your entire Vested Account will be distributed within an administratively reasonable time as of the earliest of your Retirement Date, the date you die, or the date you have a Severance from Employment for any other reason. Your Vested Account will be distributed in a lump sum, or, at your election, will be rolled over to another qualified retirement plan or to an individual retirement account (IRA) specified by you. If you fail to make the election and your Vested Account exceeds $1,000, the Plan Administrator will pay the distribution to an individual retirement account established with an affiliate of Principal Life Insurance Company. However, in making this distribution, any portion that is invested in Company Stock that is not Readily Tradable may only be distributed subject to the Plan’s available liquidity and distribution policy. In-Service Withdrawals You may, at any time after you attain age 59½, withdraw any part of your Vested Interest in your Discretionary Contribution Account. You may make such a withdrawal at any time. Investment of Accounts Your Account will be placed in a Trust fund (or an Annuity Contract) maintained by us, which will be invested primarily in Company Stock. Your Account will share in the investment performance of the Trust fund (or Annuity Contract), which is valued at least annually. Investment results will reflect any fees and investment expenses that may be charged against yours and other Participants' Accounts. You may request more information on any fees and expenses associated with the Plan from the Administrator.
The Employer will direct the investment of all Contributions (and the earnings thereon) allocated to your Account.
Page 5
Made with FlippingBook - Online catalogs