Distributions

If a Participant in a qualified plan becomes entitled to a distribution of his or her benefit (usually due to termination of employment - or upon a hardship or in-service withdrawal) federal law requires that 20% of the distribution be withheld for income tax purposes (unless the distribution is rolled over or is a required distribution). On this page is information on how to deposit these withheld taxes and on how to locate missing participants.

Tax Deposit Information
There are two types of "depositors." One is a monthly schedule depositor and the other is the semiweekly depositor. The article explains when deposits of federal tax withholdings must be made depending upon which "depositor" you are. Note that you always begin as a monthly scheduled depositor. Click here to see when your depositing status may change.

Missing Participants
Different methods for locating a missing participant.