Section IX: Income Tax

All benefits paid by this Plan are subject to Federal and may be subject to state income taxes, depending on where you live when you receive benefits.

Generally, the Administrator will withhold Federal and/or state income taxes from your benefit payments in accordance with your written instructions. You are required to complete income tax withholding forms before any benefits will be paid. If you elect no withholding or insufficient withholding, you will be liable for the unpaid taxes and may be liable for penalties.

If your benefits are paid to you in a lump sum because the present value of your vested benefits is less than or equal to $5,000, the Administrator will withhold 20% of the distribution for Federal income taxes unless you elect to rollover the distribution to another tax-qualified plan or individual retirement account. Lump sum payments received before age 55 may also be subject to a 10% Federal surtax.