“direct rollover” - Insperity

1 IMPORTANT INFORMATION REGARDING. DISTRIBUTIONS FROM YOUR 401(K) ACCOUNT. All distributions are issued in the form of a check, mailed to the address on file. Please make sure you have proper payee information available when you request a distribution and confirm that we have your current address on file. Please be advised that you will have to pay an additional fee if you need a check re-issued. To request a Distribution: Online You may access your account online in the Retirement Service CenterSM via Insperity PremierTM, located at (click on 401(k) and then Manage My 401(k)). If you do not have access to Insperity Premier, log in directly at Once in your account, select the Distributions tab and follow the steps.

2 By telephone If you have any questions, you may call the Contact Center specialists at 888-401-5273. Insperity 401(k) Contact Center specialists are available Monday through Friday between 7 and 7 CT. Processing fee Each distribution (including any lump sum and partial distribution) is subject to a $50 processing fee, which will be deducted from your account balance. There is an additional fee if you need a check re-issued or overnighted. All fees are subject to change. Options for Your Distribution: If your distribution is Direct Rollover A direct rollover is a direct payment of your vested account balance to an individual retirement account (IRA), Roth IRA, or to another employer plan that will accept it.

3 The check will be issued in the name of the receiving IRA, Roth IRA, or employer plan and mailed to you for forwarding. Lump Sum or Partial You may elect to receive all or any portion of your account balance. The taxable portion of Payment your payment will be subject to mandatory 20% federal income tax withholding, and may be subject to a 10% early withdrawal penalty. Combination of Lump You may request that a portion of your vested account balance be paid as a direct rollover, Sum Payment and with the remaining portion payable to you. The taxable portion of your payment not directly Direct Rollover rolled over will be subject to mandatory 20% federal income tax withholdingand may be subject to a 10% early withdrawal penalty.

4 If You Have an Outstanding Loan Balance: Loans may be rolled to another employer's plan provided that the receiving plan will accept the loan as part of your eligible rollover contribution. Please consult the Plan's Loan Rollover Form. Loans may not be rolled over to an IRA. If your Plan treats an outstanding loan balance as a loan offset against your account when you take a distribution, the offset amount may be subject to tax withholding and reporting depending on the circumstances, including whether it was previously deemed distributed (such as for default) and the extent to which it includes amounts from a designated Roth account. You may be able to indirectly roll over the offset amount as described in the Special Tax Notice(s), which may defer taxation on the offset amount.

5 Consult a tax adviser for further details. To help you make a decision regarding a distribution, the Special Tax Notice(s) on the following pages provides further information outlining the options and consequences. You should consult with your tax adviser to determine the financial impact of your distribution. Note: There are separate notices for payments from a designated Roth account and for payments not from a designated Roth account. 40022a 03-23-2020. SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS. FROM A DESIGNATED ROTH ACCOUNT. You are receiving this notice because all or a portion of a payment you are receiving from your 401(k) Plan (the Plan ) is eligible to be rolled over to a Roth IRA or designated Roth account in an employer plan.

6 This notice is intended to help you decide whether to do a rollover. This notice describes the rollover rules that apply to payments from the Plan that are from a designated Roth account. If you also receive a payment from the Plan that is not from a designated Roth account, you will be provided a different notice for that payment, and the Plan administrator will tell you the amount that is being paid from each account. Rules that apply to most payments from a designated Roth account are described in the General Information About Rollovers section. Special rules that only apply in certain circumstances are described in the Special Rules and Options section.

7 Annuity) or a designated Roth account in an employer plan (a GENERAL INFORMATION ABOUT ROLLOVERS tax-qualified plan, section 403(b) plan, or governmental section 457 plan) that will accept the rollover. The rules of the How can a rollover affect my taxes? Roth IRA or employer plan that holds the rollover will After-tax contributions included in a payment from a determine your investment options, fees, and rights to payment designated Roth account are not taxed, but earnings might be from the Roth IRA or employer plan (for example, no spousal taxed. The tax treatment of earnings included in the payment consent rules apply to Roth IRAs and Roth IRAs may not depends on whether the payment is a qualified distribution.

8 If provide loans). Further, the amount rolled over will become a payment is only part of your designated Roth account, the subject to the tax rules that apply to the Roth IRA or the payment will include an allocable portion of the earnings in designated Roth account in the employer plan. In general, these your designated Roth account. tax rules are similar to those described elsewhere in this notice, but differences include: If the payment from the Plan is not a qualified distribution and you do not do a rollover to a Roth IRA or a designated Roth If you do a rollover to a Roth IRA, all of your Roth IRAs account in an employer plan, you will be taxed on the earnings will be considered for purposes of determining whether in the payment.

9 If you are under age 591/2, a 10% additional you have satisfied the 5-year rule (counting from January income tax on early distributions (generally, distributions 1 of the year for which your first contribution was made to made before age 591/2) will also apply to the earnings (unless any of your Roth IRAs). an exception applies). However, if you do a rollover, you will not have to pay taxes currently on the earnings and you will If you do a rollover to a Roth IRA, you will not be required not have to pay taxes later on payments that are qualified to take a distribution from the Roth IRA during your distributions. lifetime and you must keep track of the aggregate amount of the after-tax contributions in all of your Roth IRAs (in If the payment from the Plan is a qualified distribution, you order to determine your taxable income for later Roth IRA.)

10 Will not be taxed on any part of the payment even if you do not payments that are not qualified distributions). do a rollover. If you do a rollover, you will not be taxed on the amount you roll over and any earnings on the amount you roll Eligible rollover distributions from a Roth IRA can only over will not be taxed if paid later in a qualified distribution. be rolled over to another Roth IRA. A qualified distribution from a designated Roth account in the How do I do a rollover? Plan is a payment made after you are age 591/2 (or after your death or disability) and after you have had a designated Roth There are two ways to do a rollover. You can either do a direct account in the Plan for at least 5 years.