B. ROLLOVERS AND TAX WITHHOLDING RULES ON SUCH ROLLOVERS.

The rollover rules apply only when you are entitled to receive your benefits. When you receive your benefits from the Plan you will receive an explanation of rollover and certain distribution rules. Thus, this short section is only a brief introduction of these rules.

Generally, benefits paid in a lump sum or in periodic payments of less than ten years qualify for “rollover” treatment and may be rolled over in two ways. You may have all or any portion of your individual account balance either 1) paid in a "DIRECT ROLLOVER" or 2) paid to you. A rollover is a payment of your Plan benefits to a traditional individual retirement arrangement (IRA) or to another eligible retirement plan. This choice will affect the tax you owe, as follows:

1. Direct Rollover. If you choose a DIRECT ROLLOVER:
   
   
• Your payment will not be taxed in the current year and no income tax will be withheld.

  Your payment from the Plan must be made directly to your traditional IRA or if you choose, to another eligible retirement plan that accepts your rollovers. A traditional IRA does not include a Roth IRA, Simple IRA or Educational IRA. In the case of a non-spouse beneficiary, payment from the Plan must be made directly to an inherited individual retirement account or individual retirement annuity.

• But, your payment will be taxed later when you withdraw your funds from the traditional IRA or qualified Employer plan.
  


2. Benefits Paid Directly to You. If you choose to have your Plan benefits PAID TO YOU:

• You may “roll over” the distribution made to you into an IRA or other eligible retirement plan, tax free, provided that you do so within 60 days of the date the distribution is made to you, but

• You will receive only 80% of the payment, because the Plan Office is required by law to withhold 20% of the payment and send it to the IRS as income tax withholding to be credited against your taxes. You may still roll over your distribution within 60 days of your receipt of payment, but you would need to use your personal funds to replace the tax withholding should you wish to roll over the entire distribution. Alternatively, you may roll over any amount less than 100% of your distribution (such as the 80% you received net of tax withholding), and be subject to income taxes on the balance not rolled over.
  
  
• Your payment will be taxed in the current year unless you roll it over.

In the case of a non-spouse beneficiary, a “rollover” distribution from the Plan must be made directly to an individual retirement account or individual retirement annuity, which should be established and treated for minimum distribution purposes as an inherited IRA. A non-spouse beneficiary cannot roll over a direct distribution made after your death; only a direct transfer to an IRA treated as an inherited IRA is allowed.