Northwest Carpenters Vacation Plan

Income Tax 

Vacation Plan contributions are after-tax amounts deducted from your wages. Therefore, you have no further tax obligation on those contributions. However, all dividends paid to your account are considered taxable income. Qualstar will provide you with a 1099 Interest form by January 31 of each year. This form lists your interest earnings from this account for the preceding year.

Contributions and dividends to your Qualstar account are considered "earned income." Therefore, the Internal Revenue Service can garnish these wages to pay back taxes. A lien can also be placed on the money for other reasons such as child support. No withdrawal can be made when these restrictions are imposed.

Last Updated: 04/20/2023