Page 5 - Sonepar USA 401(k) Plan education guide

Loans
» One outstanding loan permitted at a time (general or residential)
» One-timeloanoriginationfee:$50perloan
» Minimumloanamount:$1,000
» Maximumloanamount:$50,000or50%ofyourvestedaccountbalance,whichever
is less
» Interestrate:Primerateatthetimetheloanisinitiated,plus1%
» Ageneralloancanbetakenforupto5yearsandaresidentialloanforupto15years
At termination of employment, a participant is required to pay off the loan, or it will be considered a withdrawal with relevant penalties and tax consequences.
Hardship withdrawal
You may be eligible for a hardship withdrawal if you exhaust all other withdrawal options in the Plan and experience a hardship as listed below:
» Topreventevictionfromorforeclosureofyourprimaryresidence
» Torepairdamagetoyourprimaryresidence
» Topurchaseaprimaryresidence
» Topayforpost-secondaryeducationforyouoranimmediatefamilymember » Topayforuninsuredmedicalexpenses
» Topayforfuneralexpensesforanimmediatefamilymember
Following a hardship withdrawal, you will be suspended from contributing to the Plan for a period of six months.
591⁄2 withdrawal
If you are age 591⁄2 or older, you may be eligible for a distribution from the Plan.
Disability
If you become disabled, you may be eligible for a distribution from the Plan.
Termination and retirement
When you retire or otherwise leave Sonepar USA, you are eligible for a distribution of your vested balance. Distribution payment options will include ad-hoc withdrawals; lump sums; rollovers; and monthly, quarterly, semi-annual, or annual installments.
Withdrawals from the Plan may be subject to income tax and possible penalties. 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.
Withdrawals
3
Plan highlights