Northwest Carpenters Individual Account Pension Plan

Taxes and Rollovers 

The amount credited to your account and the investment earnings in your account are not considered taxable income until they are distributed from the plan. The form of payment you receive also affects the taxation of your account.

If you receive a lump sum payment, period certain payment of less than ten years, minimum annual payment of less than ten years, split distribution, and certain preretirement death benefit payments, the plan is required to withhold 20% for federal income tax. However, these types of payments are eligible for a rollover into an Individual Retirement Account (IRA) or an eligible retirement plan willing to accept the benefits. If you roll over the benefits and meet the requirements of the Internal Revenue Code (IRC), withholding is not mandatory. You will be given complete information when you apply for benefits, as well as the opportunity to elect a rollover.

Milliman will provide you with a Form 1099-R in late January of each year following the year in which you receive a distribution (or make a direct a rollover) for the April 15 individual tax return deadline.

Last Updated: 04/25/2023