Tax Information

Please note that all pension distributions are taxable as ordinary income.

Taxes withheld from your pension may not fulfill your total tax obligation. See your tax advisor for more information. If you choose to take a lump sum (or a partial lump sum), 20% will automatically be withheld for taxes on any portion paid directly to you.

One way to temporarily postpone the taxation of your lump sum is to roll over the sum directly into an Individual Retirement Account (IRA). Once you roll the money into an IRA, it is not taxed until you withdraw it after age 59½. If you withdraw the money from your IRA before you turn 59½, an additional 10% penalty tax may apply.

You should consult your financial advisor regarding any other rollover options.

Tax Forms:

• Notice of Tax Withholding on Pension Payments (Retirees/Beneficiaries Only)
• Federal Tax Withholding Election (W-4P) (Federal Tax Withholding Sign Up, Change, or Discontinue)