BAC LOCAL 5 NEW YORK ANNUITY PLAN is a DEFINED CONTRIBUTION PLAN. This type of Plan generally establishes an account for each individual Participant where a defined amount is being contributed by the Participant, the employer or both. Some examples of this type of plan are 401(k), 401(a), Employee Stock Ownership Plan (ESOP), Savings Plans and Profit-Sharing Plans.
With this type of plan, the Alternate Payee is typically awarded a portion of the Participant's account balance as of a specific date, expressed as either a percentage, or as a specific dollar amount, by way of a Qualified Domestic Relations Order (QDRO). The Plan will establish a separate account for the Alternate Payee and will usually allow the Alternate Payee the opportunity to utilize investment opportunities that are available for other participants in the Plan. This type of plan generally affords an Alternate Payee the ability to receive an immediate lump sum distribution (or withdrawal) upon approval of a QDRO. The Alternate Payee may also choose to transfer the awarded funds to another tax qualified account of his/her choice – for example, to an Individual Retirement Account (IRA). It is important for an Alternate Payee to consult with a tax professional before making any transfers or withdrawals, in order to be fully informed as to any potential tax consequences arising from either the timing or nature of the transfer or withdrawal.
Features of the BAC LOCAL 5 NEW YORK ANNUITY PLAN may include:
- This Plan is an “Age/service weighted” or “new comparability” or similar plan. An “Age/service weighted” plan is a plan where allocations to the Plan on behalf of a Participant are based on age, service, or age and service. “New comparability” or similar plans are where allocations to the Plan are based on participant classifications. Classification(s) consists entirely or predominantly of highly compensated employees; or the plan provides an additional allocation rate on compensation above a specified threshold, and the threshold or additional rate exceeds the maximum threshold or rate allowed under the permitted disparity rules of Code section 401(l).
- This Plan is a “Profit-Sharing Plan”, where employer contributions are variable and are based upon a portion of company profits based upon quarterly or annual earnings.
The Plan features and descriptions presented are provided only as examples and
descriptions a particular type of plan. Participants and Alternate Payees should
review the applicable Summary Plan Description for a detailed description of the
specific terms and options for the specific Plan in question.
The information provided on this page is based upon the most recent Plan tax filings
available. The terms of a specific plan may have changed since the most recently
available tax filing, and as a result, these descriptions and features may not be
current. SimpleQDRO makes no representations as to accuracy of these
SimpleQDRO is neither the administrator, nor a
of this Plan. SimpleQDRO provides this information merely as a courtesy and makes no
warranties as to the current status or accuracy of these descriptions.