Annuity

VOLUNTARY CONTRIBUTIONS INTO YOUR MPP&T ACCOUNT

Effective January 1, 2021, participants can make after-tax contributions to their individual Money Purchase Plan & Trust (MPP&T) account. These contributions are voluntary (hence the name “Voluntary Contributions”) and can be made in any amount up to the permissible Internal Revenue Service (IRS) limits.

Regarding that, the IRS has placed limits on the amount a participant is able to contribute on an after-tax basis during any calendar year. Specifically, these limits are those that are described within the Internal Revenue Code Section 415(c), which, as of this writing, states that the participants voluntary contributions are limited to the difference between the total amount your employer(s) contributed during a calendar year and $58,000.00.

Participants who make voluntary contributions to their MPP&T account are always 100% vested in the value of those contributions. Meaning, at any time, upon application to the Plan’s third-party administrator, you can receive a distribution of the money you voluntarily contributed. However, any investment gains made on the amount of voluntary contributions withdrawn will be taxed in the year they are distributed.

Participants can make voluntary contributions by sending a personal check made payable to the Local 697 MPP&T Plan.