Page 5 - SGH Profit Sharing & 401(k) Plan and Trust

Withdrawals Our Plan is designed primarily to help you save for retirement; there are IRS restrictions on when money may be withdrawn from your Plan account. The IRS does, however, recognize that certain events may present a need for you to access your savings. Under the following circumstances, you may withdraw money from your Plan account: RETIREMENT You can withdraw money from your Plan account when you reach the normal retirement age of 65. LOANS You may borrow from your vested Plan account balance. Loan repayments are made through salary deductions each pay period. • Theminimumloanamountis$1,000 • Themaximumis$50,000or50%ofyourvestedbalance,whicheverisless • Thereisaone-timefeeof$75oneachnewloan • Theinterestratefortheloanistheprimerateatthetimetheloanistakenplus0.5% • Twooutstandingloansallowedatatime • Themaximumtermforageneralloanisfiveyears,and30yearsforaresidentialloan IN-SERVICE You can withdraw money from your Plan account while you are still employed by SGH if you are at least age 591⁄2. These withdrawals are allowed under certain circumstances. HARDSHIP WITHDRAWALS A “financial hardship” is defined as a heavy and immediate financial need that cannot be satisfied by other resources available to you. You may be eligible to withdraw a portion of your Plan account balance if you experience a financial hardship. Qualified reasons for a hardship withdrawal may include: • Topreventevictionfromorforeclosureofyourprimaryresidence • Topurchaseaprimaryresidence • Topayforpost-secondaryeducationforyouoranimmediatefamilymember • Topayforuninsuredmedicalordentalexpenses • Torepairdamagetoyourprimaryresidence • Tocoverfuneralexpensesforanimmediatefamilymember • Tocovercertainexpensesandlossesincurredasaresultoffederallydeclareddisasters Hardship withdrawals are subject to ordinary income tax and may be subject to a 10% federal penalty. Residents of certain states may also be subject to state penalties. TERMINATION You may receive the vested balance of your Plan account upon termination of employment. Please note: If your vested Plan account balance upon termination, or at any point thereafter, is $1,000 or less, including rollovers, your Plan account will be distributed to you as a single-sum cash distribution. If your vested Plan account balance is greater than $1,000 including rollovers, your balance will remain in the Plan. DISABILITY If you terminate your employment with SGH because you become permanently disabled, you are allowed to withdraw your money. DEATH In the event of your death, your Plan account balance will be paid to your beneficiaries. For more information about your withdrawal options, call Participant Services at 1-800-724-7526 to speak with a Participant Services Representative. This information is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, financial planner or investment manager. 5