NORTHWEST CARPENTERS INDIVIDUAL ACCOUNT PENSION PLAN

Frequently Asked Questions

  • What are the vesting requirements of this plan?

    The current vesting rule was established on January 1, 2007 and requires three years of credited service in this plan or in combination with one or more reciprocal plans. At least one year of credited service must be in this plan. If you participated in this plan prior to January 1, 2007, and you don't have any credited service after that date, you may have vested in employer contributions under a different vesting rule.
  • If I can't work for a period of time and am not vested, how can I keep from forfeiting my benefits?

    When you are vested in the plan, you earn a permanent right to benefits. Prior to vesting, this plan follows federal guidelines that prevent you from forfeiting benefits unless you have less than 500 covered hours in five consecutive years. In addition, the plan has several other methods that may help you prevent a break in service and forfeit benefits. Please contact the Retirement Department at Carpenters Trusts for assistance.
  • Can I take a hardship withdrawal from my account?

    You may take a withdrawal of your 401(k) and Rollover subaccounts under certain circumstances. Financial hardship withdrawals are only allowed for specific reasons by the IRS and documentation of hardship is required.

    If you are at least 59-1/2 and still working, the Plan allows you to withdraw all or a portion of your 401(k) and Rollover subaccounts, as well as Employer Contributions made on and after January 1, 2014.

    You are allowed to take a distribution of all your subaccounts after 12 consecutive months have passed since you last worked in the industry.

  • What are 401(k) elective contributions?

    Elective contributions are deducted from the participant's paycheck.You may elect to make pre-tax contributions in $0.25 increments, up to 100% of your pay (subject to annual IRS limits). In 2021, the maximum contribution is $19,500 ($26,000 for participants ages 50 and older). Deductions are made before income taxes are calculated but are subject to Social Security payroll taxes (FICA) and federal unemployment taxes (FUTA).
  • Why can't I retire under the Carpenters Individual Account Pension Plan before I retire under the Carpenters Retirement Plan?

    You must be retired from the building and construction industry to be eligible for pension benefits. When you retire from the industry, your benefits from both plans are processed at the same time.
  • Can I rollover my 401(k) plan into the Carpenters Individual Account Pension Plan

    This plan does accept rollovers from 401(k) plans and other qualified plans. The balance of the Rollover Subaccount can be invested by the participant in the same manner as the Employer and 401(k) subaccounts. If you would like to rollover a qualified plan into this plan, please contact Retirement Services at Carpenters Trusts.