 |
| |
Q: Do I have to initiate the process in order for my employer to start contributing to the fund on my behalf?
A: No. Your employer is required to report to the Trust Fund office on a monthly basis and all applicable contributions are made accordingly.
Q: Will I be able to contribute to the Fund?
A: No. Contributions are made by employers only. However, you may increase your retirement savings by contributing into the Carpenters 401(k) Fund through payroll deduction.
Q: How are the investments directed?
A: The plan assets are invested by a diverse group of investment managers selected by the Board of Trustees.
Q: How often and how will I receive a statement for my account?
A: Annual statements are generated and mailed to participants usually in July of the following plan year..
Q: Are loans or hardship withdrawals permitted?
A: No. However, you may withdraw your benefits once you satisfy the eligibility requirements.
Q: What are the eligibility requirements to withdraw my funds?
A: If you are not retired, you have to have no work hours from any signatory contractor for 12 consecutive months to take out your money from the Financial Security Fund. If you are retired between age 55 - 64, you have to have no work hours for 6 consecutive months. If you are retired and age 65 and over, it is no work hours for 1 month. (Please refer to the Fund Booklet for more details.)
Q: Do I have to pay taxes on the money in my Financial Security Fund account?
A: Yes. If you withdraw your funds in a lump sum check made payable to your name, we will automatically deduct 20% to pay the IRS for the federal withholding taxes.
Q: Are there any penalties for withdrawing my benefits?
A: If you receive the payment before age 59 1/2, you may have to pay an additional 10% tax penalty.
Q: How can I avoid paying the taxes and penalties when withdrawing my funds?
A: You may elect to roll over the funds into another qualified retirement account or your Individual Retirement Account (IRA).
Q: How long does it take to process my withdrawal request?
A: As long as everything is completed correctly, it will take the Trust Fund Office around 6 to 8 weeks to process the withdrawal.
Q: Can I leave my Financial Security Fund with the Trust Funds even if I am eligible to take it out?
A: Yes, however you may not defer payment of your accumulated share beyond your required beginning date. Your required beginning date is April 1st of the calendar year following the calendar year in which you reach age 70 1/2 or the calendar year which you retire.
Q: How are the gains/losses calculated and allocated?
A: The investment gains or losses are calculated by the funds actuarial consultants based on the investment performances of the investment managers. All of the participants in the plan that has an ending balance in the prior plan year and an ending balance on December 31st of the current plan year will receive the same investment rate.
For example, if you began working with the union in January and had no balance entering the plan year, you will not be included in the allocation of the interest rate. Also, if you withdraw your funds at the end of the year in December, you will not earn any interest or sustain any losses as you will not have any ending balance at the end of the year.
Q: If I get divorced, will my ex-spouse be entitled to any of my funds?
A: It will all depend on the provisions in the retirement section of your divorce decree. If it states your ex-spouse is entitled to a portion of your retirement funds, your ex-spouse would need to file a Qualified Domestic Relations Order.
|
|
|
|
