AMERICAN RED CROSS SAVINGS PLAN BENEFIT OPTIONS …

AMERICAN RED CROSS SAVINGS PLAN BENEFIT OPTIONS AT TERMINATION OR RETIREMENT

1

Instructions to participants who transfer to another American Red Cross employer:

If you have transferred to another American Red Cross employer, you received this notice due to a termination processed in the payroll system at your original location.

Your contribution elections will automatically start at your new location. In most cases, there will be one to two paychecks where no Savings Plan contributions are deducted from your paycheck while your elections are set up at your new location. If payroll deductions have not started by your third paycheck, please call the Benefits Service Center and speak to a Customer Service Associate for assistance. Your password remains the same.

Instructions to participants who are no longer employed by the American Red Cross:

Deferral Options - You may leave your money in the Savings Plan and you may continue to monitor your account and manage your investments. If you leave your money in the Savings Plan, one year after you leave the Red Cross, a $40 service charge will be applied to your account. This service charge will continue each year thereafter. If you choose to leave your money in the Saving Plan you are eligible to take a partial or a lump sum distribution whenever you wish. You must start taking distributions once you reach age 70?.

Lump Sum Payout or Rollover to an IRA or other Qualified Plan You can request a distribution of all or part of your vested account balance by calling the Benefits Service Center at 1-877-860-7526, option 1, or by accessing your account online at .

Rollover - If you choose a direct rollover, your payment will not be taxed in the current year and no income tax will be withheld. Your payment will be made directly to your rollover institution and will be taxed in the year you subsequently take a distribution.

If you take a lump sum distribution, you can still rollover all or part of the payment within 60 days by forwarding it to your financial institution that accepts your rollover. If you want to rollover 100% of the original distribution then you must find other money to replace the Federal Tax withheld [usually 20%] and any State Tax withheld. If you rollover only a portion of the total distribution then you will be taxed on the amount not rolled over.

Lump Sum - If you choose to have Savings Plan benefits that are eligible for rollover paid to you, the plan administrator is required to withhold 20% federal withholding and state tax if applicable. You may be able to use special tax rules that could reduce the tax you owe. However, if you receive the payment before age 59 ?, you also may have to pay an additional 10% tax.

Installments - Installments will be allowed to all terminated participants and spousal beneficiaries. Payments are elected as a flat number of payments not to exceed 9 years 11 months (119 payments). The election is irrevocable except for the election of a full lump sum payout election. No partial withdrawals other than the scheduled payments will be allowed.

The plan administrator is required to withhold 20% federal withholding and state tax if applicable. You may be able to use special tax rules that could reduce the tax you owe. However, if you receive the payment before age 59 ?, you also may have to pay an additional 10% tax.

Please read the enclosed Special Tax Notice carefully prior to requesting your payment. You may want to consult a professional tax advisor before requesting a payment from the American Red Cross Savings Plan.

If you have any questions, please call the American Red Cross Benefits Service Center at 1-877-860-7526. Customer Service Associates are available Monday through Friday, 8 a.m. to 8 p.m. ET, except on New York Exchange holidays or you can obtain additional plan or account information at .

AMERICAN RED CROSS SAVINGS PLAN

INSTALLMENT FORM

1

Name (First) (MI) (Last): _________________________________________________________________________

--

Social Security Number

( ) _______ ______________________________

Daytime Phone Number

INSTALLMENT ELECTION INFORMATION

I elect to receive installment payments from my American Red Cross Savings Plan account. Elections for installments cannot exceed ten years. I elect the following number of installments:

I elect the following installment frequency (check one):

MONTHLY

QUARTERLY

ANNUALLY SEMI-ANNUALLY

I would like my payment to be sent by check

Check one:

I would like my payment to be sent by Electronic deposit. (Please complete the enclosed application

for electronic deposit).

Installment payments are processed the first business day of every month. Payments will continue until your total account balance has been exhausted. Once an installment option is selected, it is irrevocable (except to request a lump sum payment).

INSTALLMENT AUTHORIZATION

I certify that I have read and understand the contents of this form, and that all information contained on or submitted with this form is accurate and complete. I authorize a distribution from my Savings Plan account as Installments in accordance with the elections I have indicated above. I realize that submitting an installment request that is not in good order will result the denial of my request.

_________________________________________________ Signature

_____________________ Date

Please send this completed form and required documentation to:

American Red Cross Savings Plan, P.O. Box 57908, Jacksonville, FL 32241-7908

If you have any questions, please call the American Red Cross Benefits Service Center at 1-877-860-7526. Customer Service Associates are available Monday through Friday, 8 a.m. to 8 p.m. ET, except on New York Exchange holidays or you can obtain additional plan or account information at .

AMERICAN RED CROSS SAVINGS PLAN ELECTRONIC DEPOSIT OF FUTURE PAYMENTS FORM

Name (First) (MI) (Last): _________________________________________________________________________

--

Social Security Number

( ) _______ _______________________________

Daytime Phone Number

AUTHORIZATION I, the payee [noted above and signed below] for distributions received under the American Red Cross Savings Plan; request that payments be deposited by State Street Bank (the Trustee ) into my account at the financial institution named below through the Automated Clearing House (ACH). In the event of an overdraft, the Trustee may adjust my account in the American Red Cross Savings Plan, if feasible. If not feasible, the Trustee is also authorized to debit my account to adjust any over deposits which it has caused to be made to my financial institution account as a result of the deposit.

ACH Deposits will be credited to your account within five business days of your plan specific transaction date.

This authorization will remain in effect until written notice from me is filed with the Trustee, or will stop when the Trustee is notified of my death or written notification is received from the financial institution.

TO BE COMPLETED BY THE FINANCIAL INSTITUTION

We, the certified receiving financial institution designated below, hereby agree to receive and post credits and/or debits from the payee named on the previous page. We understand that the payee named above has the right to cancel this authorization at any time by written notice to the Trustee. We reserve the right to cancel this agreement by written notice to the payee. We understand that our financial institution is bound by the National Automated Clearing House (NACHA) systems standards and procedures.

Name of Financial Institution

Branch

Organization Address

City State Zip

Authorized Signature and Title

Telephone Number

Routing Number

Deposit Account Title

Deposit Account Number

CHECKING SAVINGS

I certify that I have read and understand the contents of this form, and that all information contained on or submitted with this form is accurate and complete. I realize that submitting an invalid request will result in the generation of a check without notification.

_________________________________________________ Signature

_____________________ Date

Please send this completed form to:

American Red Cross Savings Plan, P.O. Box 57908, Jacksonville, FL 32241-7908

If you have any questions, please call the American Red Cross Benefits Service Center at 1-877-860-7526. Customer Service Associates are available Monday through Friday, 8 a.m. to 8 p.m. ET, except on New York Exchange holidays or you can obtain additional plan or account information at .

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download