Under IRS rules, distributions are subject to taxes and penalties depending on the participant’s age and type of contribution account, as described below:
|Type of Distribution||Subject to Ordinary Income Tax||Subject to Penalty Tax for Early Payment||Eligible for Rollover|
|After-tax employee contributions||Only the earnings||Only the earnings||Yes*|
|Roth 401(k) contributions||Only the earnings, except for a “qualified” distribution||Only if taxable||Yes|
|All other contributions||Yes||Yes||Yes|
* The Program will need specific instructions to include after-tax contributions in a rollover distribution, if applicable.