| 1. How much of my income can I direct to the fund?
Depending upon your specific employers agreement with the Trust, the participant may direct from up to 50% of their gross earnings, up to a 2011 IRS maximum of $16,500 per year. If you are over 50 years old, you may contribute an additional $6,000. Any employer match or other type of pension contribution does not affect this amount.
2. Who is eligible and when can I enroll?
If your employer has adopted the plan, you may enroll once you have satisfied the length of required service with the employer. If you are laid off or quit and have returned, you do not have to re-qualify as long as you have satisfied the length of service requirement when you left.
The Trust allows for about a one-month enrollment once the unit adopts the Trust. After that period, the employer has the right to restrict new enrollments to Jan 1, April 1, July 1, and Oct 1. Some employers process the forms when received, so we encourage the workers to forward the enrollment forms to the Trust as soon as they decide to enroll and we forward them to the employer asking them to immediately process the form if possible.
3. Do I have to close my account if I leave my employer?
If you have less than $5,000 in your account, the Trust can legally make a distribution to you, however, in practice we normally allow participants to maintain their plan balances. In the case of a distribution, it can be made directly to you, however, this would create a taxable event and be subject to a 10% IRS penalty if the worker is under 59½ years of age. The Trust is also obligated to forward 20% of all nonqualified distributions to the IRS for income tax purposes. You may be eligible to roll over the amount in your CWA 401K account into an IRA or other employers' 401K plan to avoid distribution tax consequences.
If a participant has more than $5,000 in their account, they may leave it in the Trust. However, the Trust is obligated to start making distributions once the participant reaches the age of 70½.
4. Can I get a distribution without leaving the employer?
If a participant has one of the following circumstances, they may be eligible for a hardship withdrawal:
a) The purchase of a primary residence
b) To pay unpaid medical bills not covered by insurance
c) For educational expenses associated with post-secondary education for participants and family members.
d) To avoid eviction or foreclose on the participants primary residence.
Hardship distributions are taxable, and generally a 10% penalty will apply if the participant is under 59½ years of age.
5. How often and when can I change my investment options?
The participant can change funds of existing money and/or future money on a daily basis by a phone call or by accessing Hartford's Internet site. Changes to the percentage of the participant’s deduction are generally limited to once each quarter.
6. How often will the participant's receive statements?
Statements will be mailed by the Trust's record-keeper, Hartford, once each quarter.
7. Can I roll in my IRA or my former employer's 401K account into the CWA Trust?
The Trust accepts any funds that can be identified as IRS qualified Pension/401K funds. If the IRA was set up strictly for a rollover from another 401K or pension plan, there are generally not any issues restricting the transfer. If the IRA has individual contributions, it cannot be rolled into the Trust. There is rarely a problem accepting a rollover from another employer's plan, if the other plan allows a distribution. You may also neeed to contact your previous employer to obtain documents to transfer those assets into the CWA plan.
8. What does it cost to participate in the Trust?
Fees and expenses are deducted and listed on the quarterly statement. For more detailed information, please contact the plans financial advisors.
9. When can I stop contributions?
Contributions can be stopped at anytime by sending in the contribution change form to the Trust office. You may be required to wait until the start of another quarter to reenter the Trust.
10. How can I get more information about the Trust?
You can obtain information about the Trust by calling the Trust offices at 1-800-987-0721 or by fax at 202-783-2748. Ask for Trust's Joinder Agreement as well as suggested language for newly bargained contracts.
You can obtain information about the Trust's investments, financial planning issues and to arrange for enrollment meetings by calling the Trust's Financial Advisor Eric Zakarin at Morgan Stanley Smith Barney:
- Eric Zakarin at 1-866-380-9480
|