PRE-TAX |
ROTH 401(k) |
REGULAR AFTER-TAX |
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Yes; must meet Plan requirements for hardship (excluding SDBA and UPS Stock Fund balances)
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No
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After-tax funds may be withdrawn at any time
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Contributions and investment earnings are taxed as ordinary income for qualified withdrawals
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Qualifying contributions and investment earnings may be withdrawn tax-free for qualified withdrawals
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Contributions may be withdrawn tax-free at any time; investment earnings are taxed as ordinary income at withdrawal
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IN-SERVICE WITHDRAWAL REQUIREMENTS (ACTIVE EMPLOYEE) |
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Age 59 ½ or older for contributions and investment earnings
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Age 59 ½ or older plus Roth 401(k) contributions must remain invested for at least a 5-taxable-year period, beginning with the year of your first Roth 401(k) contribution
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No requirements
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HARDSHIP WITHDRAWALS PERMITTED |
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Yes; must meet Plan requirements for a hardship
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No
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Yes; must meet Plan requirements for a hardship
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10% EARLY WITHDRAWAL PENALTIES |
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If you leave UPS prior to age 55, the penalty will apply to distributions received prior to age 59 ½
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10% early withdrawal penalty, plus ordinary income taxes on earnings received prior to 59 ½ or held less than 5 years
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10% early withdrawal penalty
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ROLLOVERS PERMITTED WITH NO TAXES DUE |
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To an IRA or other employer qualified retirement plan, so long as that plan accepts 401(k) rollovers
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To a Roth IRA or other employer qualified retirement plan, so long as that plan accepts Roth 401(k) rollovers
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To an IRA or other employer qualified retirement plan, so long as that plan accepts 401(k) after-tax rollovers
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