Carpenters Individual Account Pension Plan
Article 10: Miscellaneous Provisions
A Participant shall furnish the Trustees with any information or proof that they may deem necessary and reasonable in order to administer the terms of this Plan.
If any provisions of the Plan are held to be illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts of the Plan, but the Plan shall be construed and enforced as if such illegal and invalid provisions had never been inserted in the Plan.
- Maximum Annual Additions. Notwithstanding any other provision of this
Plan, under EGTRRA Section 631 and Internal
Revenue Code § 414(v), if applicable, the
annual addition that may be contributed or
allocated to a Participant's Account under the
Plan for any limitation year shall not exceed the
lesser of: (a) $40,000, as adjusted for increases
in the cost-of-living under Internal Revenue
Code § 415(d); or (b) 100 percent (100%) of
the Participant's compensation, within the
meaning of Internal Revenue Code § 415(c)(3), for the limitation year. The compensation
limit referred to in (b) shall not apply to
any contribution for medical benefits after
separation from service (within the meaning of
Internal Revenue Code § 401(h) or § 419A(f)(2)) which is otherwise treated as an annual
addition. The provisions of this Article 10.3
shall be interpreted in accordance with
Internal Revenue Code § 415 and applicable
regulations, which are incorporated herein by
reference. In the case of a Catch-Up Eligible Participant, Catch-Up Contributions shall be disregarded for purposes of the foregoing limitation.
- Maximum Annual Limit on
Elective Contributions. The maximum Elective
Contributions for the Participant's taxable year,
together with all other elective deferrals as
defined in Internal Revenue Code § 402(g)(3)
made by the Participant, shall not exceed the
dollar limit in Internal Revenue Code § 402(g)
(1), adjusted annually for inflation as described
in Internal Revenue Code § 402(g)(4). In the case of a Catch-Up Eligible Participant, Catch-up Contributions shall be disregarded for purposes of the foregoing limitation.
If the Participant's Elective Contributions exceed the limit set forth above (or the Participant notifies the Plan not later than March 1 after the end of the taxable year that he has exceeded the limit taking into account other elective deferrals), the Plan shall distribute such excess elective deferrals, adjusted for earnings allocable thereto (including the gap period), no later than April 15.
- ADP Testing on Elective
Contributions. Notwithstanding Article
10.3(b), annual Elective Contributions made
by a Highly Compensated Employee shall
not exceed the limit established by Actual
Deferral Percentage ("ADP") testing conducted
in accordance with Internal Revenue Code § 401(k)(3)(A)(ii) and regulations thereunder, as
described in Appendix A.
- Direct Rollover. Effective
for distributions payable on and after August
1, 2007, a Participant, surviving spouse, or
nonspouse beneficiary who is entitled to a
distribution may elect to have any portion of
an Eligible Rollover Distribution paid directly
to an Eligible Retirement Plan in a Direct
Rollover. Notwithstanding the foregoing,
distributions less than $200 per calendar year
are not eligible for Direct Rollover.
- Eligible Rollover Distribution. An Eligible Rollover Distribution is any distribution of all or any portion of the balance to the credit of the Participant, surviving spouse, or nonspouse beneficiary provided that an Eligible Rollover Distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the surviving spouse or a nonspouse beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under Internal Revenue Code § 401(a)(9); and the portion of any distribution that is not includible in gross income.
- Eligible Retirement Plan. Effective January 1, 2002, in the case of distributions made to a Participant, an Eligible Retirement Plan is an individual retirement account described in Internal Revenue Code § 408(a), an individual retirement annuity described in Internal Revenue Code § 408(b), an annuity plan described in Internal Revenue Code § 403(a), a qualified trust described in Internal Revenue Code § 401(a), an annuity contract described in Internal Revenue Code § 403(b), or an eligible plan under Internal Revenue Code § 457(b) which is maintained by an eligible employer described in Internal Revenue Code § 457(e)(1)(A), that accepts the Eligible Rollover Distribution. Effective January 1, 2008, an Eligible Retirement Plan shall also mean a Roth IRA, provided that the distributee is eligible to make a qualified rollover contribution to a Roth IRA as described in Code Section 408A(c)(3)(B). The definition of Eligible Retirement Plan applicable to a Participant shall also apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the alternate payee under a Qualified Domestic Relations Order. Effective August 1, 2007, in the case of distributions made to a nonspouse beneficiary, an Eligible Retirement Plan is an individual retirement account described in Internal Revenue Code § 408(a) or an individual retirement annuity described in Internal Revenue Code § 408(b), which is established in a manner which identifies it as an account with respect to the deceased Participant and also identifies the deceased Participant and the nonspouse beneficiary.
- Direct Rollover. A Direct Rollover is a payment by the Plan to the Eligible Retirement Plan specified by the Participant, surviving spouse, or nonspouse beneficiary.
- Limit on Distributions. A Participant, surviving spouse or nonspouse beneficiary may split an Eligible Rollover Distribution which is greater than $500, by receiving a portion as a Direct Rollover and receive direct payment of the balance, provided that the amount to be distributed as a Direct Rollover must be at least $500. Only one Direct Rollover shall be allowed with respect to each distribution.
Notwithstanding any provision of this Plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with Internal Revenue Code § 401(a)(37) and § 414(u), provided that for benefit accrual purposes, an individual shall not be treated as resuming employment if the individual dies or becomes disabled while performing qualified military service. Funding to provide Employer Contributions and benefits attributable to periods of qualified military service will be a Plan expense. Contributions for qualified military service will be based upon the Participant's average Hours of Service during the twelve (12) month period immediately preceding the qualified military service or, if shorter, the period of employment immediately preceding the qualified military service; and the Employer Contribution rate in effect during qualified military service.
A Participant whose employment is interrupted by qualified military service or who is on a leave of absence for qualified military service (as defined under Internal Revenue Code § 401(a)(37) and 414(u)) may elect, upon resumption of employment with an Employer, to make additional Elective Contributions up to the maximum Elective Contributions that the Employee could have elected during that period if the Employee's employment had continued at the same level of Compensation without the interruption or leave. Except to the extent provided under Internal Revenue Code § 414(u) of the Code, this applies for five (5) years following the resumption of employment (or, if sooner, for a period equal to three (3) times the period of the interruption or leave).
A Participant electing a lump sum payment under Article 4.4 prior to December 31, 2017 may request transfer of all or part of the vested Individual Account to the Carpenters Retirement Plan of Western Washington ("Retirement Plan") for the purpose of providing additional monthly retirement income from the Retirement Plan. Transfer of benefits is contingent upon acceptance of the transfer by the Trustees of the Retirement Plan, which shall not occur with respect to a Participant, whose "retirement income starting date" as that term is defined in the Retirement Plan, occurs after December 31, 2017. Amounts transferred to the Retirement Plan shall be held and distributed pursuant to the terms of that plan.
10.6 Pension Enhancement Option
A Participant electing a lump sum payment under Article 4.4 may request transfer of all or part of the vested Individual Account, to the Carpenters Retirement Plan of Western Washington ("Retirement Plan") for the purpose of providing additional monthly retirement income from the Retirement Plan. Transfer of benefits is contingent upon acceptance of the transfer by the Trustees of the Retirement Plan. Amounts transferred to the Retirement Plan shall be held and distributed pursuant to the terms of that plan.
With the consent of the Trustees, amounts may be transferred from other qualified plans, provided that the trust from which such funds are transferred permits the transfer to be made, and the transfer will not, in the opinion of the Trustees, jeopardize the tax-exempt status of the Plan or Trust. The Plan shall only accept amounts transferred from other qualified plans on behalf of a Participant which are:
- Amounts transferred to this Plan directly from another qualified plan; or
- Lump-sum distributions
received from a Participant from another
qualified plan which are eligible for tax-free
rollover to a qualified plan and which are
transferred by the Participant to this Plan
within sixty (60) days following his receipt
The Plan shall not accept any portion of a distribution which is attributable to a "designated Roth account."
Prior to accepting any transfers from a qualified plan, the Trustees may require the Participant to establish that amounts to be transferred meet the requirements of this Article and Internal Revenue Code § 402. Amounts transferred shall be held pursuant to the terms of the Plan, and allocated to the Rollover Subaccount of the Participant on whose behalf the transfer was made. A Participant's Rollover Subaccount may not be withdrawn by or paid to a Participant, in whole or in part, except as provided in Article 2.8.
For purposes of this Article, the term "qualified plan" shall mean a tax-qualified plan under Internal Revenue Code § 401(a).
Last Updated: 11/10/2020