D. TAX WITHHOLDING RULES ON MONTHLY BENEFIT PAYMENTS.

As required by law, Federal income taxes will be withheld from your monthly benefit payments presuming that you are married with three exemptions unless you reject it or elect otherwise by filing a W-4P form with the Plan Office. If federal income taxes are withheld from your benefit and you are a California State resident, the equivalent of 10% of your Federal Tax withholding will be withheld for state income tax withholding purposes, unless you reject California State tax withholding on a DE4-P form filed with the Plan Office. These forms are available upon request and on the EISB.org website. You may want to consult with a tax advisor to discuss your payment and withholding options.

WARNING: Regarding Potential Adverse Tax Impact
Federal tax withholding on your benefit payment may be insufficient to meet your tax obligations when you file your tax return, particularly if you take a large partial or total distribution from the Plan. Your Plan distribution, which will increase your taxable income, may, in many instances, place you in a higher tax bracket requiring a tax payment of much more than the amount withheld by the Plan on your behalf (plus there may be additional state tax). You are advised to consult with a tax advisor prior to taking a Plan distribution.