This option allows you to specify a dollar amount or percentage of your funds that you want to withdraw. The payment is made directly to you and is reported as ordinary income. A Form 1099-R will be mailed to you by January 31 of the year following your payment.

This option allows you to choose one of the following types of payment from your Savings Plus account(s): fixed period, fixed amount, or required minimum distributions, described below. You may stop installment payments at any time if you are younger than age 73, or select a different payment method (fixed period, fixed amount, annual, monthly, or quarterly) by contacting a Savings Plus Solutions Center representative; changes take effect immediately.

All payments are deposited directly into a financial institution of your choice via ACH. If the banking information is not complete or accurate, we will send you a hard copy check. We deduct a $2 fee from each installment payment issued by check. There is not a fee if you receive periodic payments by direct deposit.

• Fixed Period
  You may choose to receive monthly, quarterly and annual payments over a fixed period of time. We calculate your payments by dividing your account balance by the number of payments you want to receive. Your payments are recalculated each month (if you choose a monthly payout) or each year (if you choose an annual payout) so that your account balance is exhausted at the end of your payment schedule. Your payments may increase when you reach age 73 if they are less than the required minimum distribution amount.
  
  
• Fixed Amount
  This option allows you to designate a specific dollar amount to receive monthly, quarterly or annually. The minimum payment period is one year. Your payments may increase when you reach age 73 if the payment amount is less than the minimum distribution amount required by the IRS. You may receive payment at the end of the year if the required minimum distribution amount is insufficient.
  
  
• Required Minimum Distribution
  You may select this annual payment option in the year you reach age 73 or the year you retire, whichever is later. We will send you a letter of notification if you are not receiving these payments. You can delay your first required minimum distribution until April 1 of the year following the year you reach age 73. However, as you are required to receive two payments the following year, one in March and another in November, delaying your payment could result in a higher tax liability for that year.

Your minimum payment amount is calculated as follows: the balance of your 401(k) and/or 457(b) accounts on the preceding December 31 divided by your life expectancy, which is based on one of the following two standards:

• Uniform Lifetime Table: We use this standard if you do not designate a beneficiary, if your spouse is your beneficiary and is less than 10 years younger than you, or if your sole beneficiary is not your spouse.
• Joint Life and Last Survivor Expectancy Table: We use this standard if your spouse is your sole beneficiary and is more than 10 years younger than you. You must provide proof of your spouse's date of birth.

You can get these tables from IRS Publication 590 (revised January 2005), available on the IRS website. (Different rules apply after your death.)

We mail a Form 1099-R to you by January 31 of the year following your payment.

If you do not take a required minimum distribution in the year it is due, you may be subject to additional taxation and/or penalty. For more information, please consult IRS Publication 575, Pension and Annuity Income; and IRS Form 5329, Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts.

This option allows you to withdraw additional funds any time you are receiving installment payments. The supplemental payment will be processed in the same manner and by the same method as your installment payment.

However, a supplemental payment will reduce the amount of your future fixed-period payments or the number of remaining fixed-amount payments.

IRS regulations generally require you receive a required minimum distribution (RMD) in the year you reach age 73 or the year you retire, whichever is later. We will notify you if you are required to receive an RMD. You have the option to delay your first RMD until April 1 of the following year. If you delay, you may be required to receive two payments in the same year — one in March and another in November. Since RMDs are taxed as income, receiving two payments in the same year could result in a higher tax liability.

We calculate your RMD payment as follows: the balance of your plan account on the preceding December 31 divided by your life expectancy. Life expectancy is based on one of the following:

Uniform Lifetime Table: We use this when you do not have a beneficiary on file, your spouse is your beneficiary and is less than 10 years younger than you, or your sole beneficiary is not your spouse.

Joint Life and Last Survivor Expectancy Table: We use this table when your spouse is your sole beneficiary and is more than 10 years younger than you. You must provide proof of your spouse's date of birth.

Go to the IRS website to get these tables (Publication 590). We send a Form 1099-R to you by January 31 of the year following your payment.

If you do not take an RMD when required, you may be subject to additional taxation and/or penalty. For more information, consult IRS Publication 575, Pension and Annuity Income and IRS Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, both available on the IRS website.