UA Local 447 Pipe Trades Trust Funds

Pension DC Plan BenefitTabs

Official Tax Notice	Click here for the Official Tax Notice.

Tax on Distributions.	Tax on Distributions. As a general rule, when you receive a distribution directly from a qualified pension plan, such as this Plan, you will pay federal and state taxes on the distribution. (There may be an exception for certain types of payments on account of a disability.)

Potential 10% Additional Tax on Certain Distributions	In the Tax Reform Act of 1986, Congress added section 72(t) to the Internal Revenue Code, which imposes an additional 10% tax on certain early distributions from a qualified plan, unless the distribution meets one of the exceptions listed below. The primary exceptions to the 10% tax penalty include: Eligible Rollover Early Retirement Certain Disabilities Periodic Payments--Substantially Equal Payments

California Additional Tax	You may also be liable for state tax penalties. For example, California assesses a 2.5% penalty.