Common use of DISTRIBUTION ELECTION Clause in Contracts

DISTRIBUTION ELECTION. Lump sum OR (enter number, not to exceed 15) Annual installments • If you choose a lump sum, the account balance will be paid out and taxed upon vesting. • If you choose to receive annual installments, an initial distribution will be made in the vesting year that is equal to the amount needed to pay federal, state and local income tax withholding on the vested account balance. Subsequent distributions will be distributed in annual installments beginning one year after the initial distribution.

DISTRIBUTION ELECTION. Lump sum OR (enter number, not to exceed 15) Annual installments •  If you choose a lump sum, the account balance will be paid out and taxed upon vesting. •  If you choose to receive annual installments, an initial distribution will be made in the vesting year that is equal to the amount needed to pay federal, state and local income tax withholding on the vested account balance. Subsequent distributions will be distributed in annual installments beginning one year after the initial distribution.