|Operating Engineers Local 66 Annuity Fund|
Internal Revenue Regulations permit all or any portion of the Participants Annuity Retirement Benefit to be paid in a Direct Rollover, or paid to the participant. A Rollover is a distribution by the Annuity Fund directly to a participants (IRA) or other qualified employer plan. Under current tax law participants who select a Direct Rollover are not taxed in the current year.
Retired participants receiving an Annuity Retirement Benefit are subject to 20% withholding of Federal taxes as required by law. The withheld taxes are sent to the IRS to be credited against the participant tax liability.
Option payments, participants that elect to have their Annual Optional amount paid directly to them are subject to a mandatory 20% Federal Income Tax Withholding. The payment is taxed within the year the participant receives the funds, unless within sixty days the amount is rolled over to an IRA or another plan that accepts rollovers. Participants under age 59 1/2 receiving their option payment will also be subject to an additional 10% tax of the taxable portion of the payment.