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Important Federal Income Tax Withholding Information
This information is required to carry out the Internal Revenue laws of the United States and to provide you with some basic information about
withholding of Federal income tax from your payment under the policy specified in the Income Tax Withholding Election section.
A withdrawal may result in a taxable gain reportable to the IRS. Generally, Federal withholding applies to taxable payments made from pension,
profit-sharing, stock bonus, annuity and other employer deferred compensation plans, individual retirement arrangements (IRA), and commercial
annuities (which include individual annuity, life insurance and endowment policies). If you make a withdrawal before you reach age 59½, you also
may be subject to a 10% penalty tax on any taxable gain. This would be in addition to any income tax you may be subject to on that taxable gain. If
you take a distribution from a SIMPLE IRA during the 2-year period beginning on the date you first participated in the SIMPLE IRA plan, the penalty
tax described above is increased from 10% to 25%. Please consult a professional tax advisor for more information on this tax penalty and for
exceptions to this rule.
Federal income tax must be withheld at a 10% rate unless you elect not to have withholding apply to the taxable portion of your payment. You can
make this election by checking the appropriate box in the Income Tax Withholding Election section. Non-persons such as corporations, companies,
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are not to be withheld will apply to any other payment from the same policy. You may change this election at any time. To change your previous
election, check one of the boxes in the Income Tax Withholding Election section.
Even if you elect not to have Federal income tax withheld, you are liable for payment of such tax on the taxable portion of your payment. There are
penalties under the estimated tax payment rules if enough tax has not been paid through either estimated tax payments or withholding. As noted
above, there is also an additional 10% tax penalty imposed by the IRS that applies to certain policy gains on premiums paid after December 31, 1982
for withdrawals before you reach age 59½.
If the taxable portion of a payment when added to the taxable portion of all other payments during the year is less than $200, Federal income tax is
not required to be withheld.
We will not withhold Federal income tax if the payment is being made to the Trustees of a qualified pension or profit sharing plan.
One Indirect Rollover Per Year Rule (Applies to Traditional, Roth, SEP and SIMPLE IRAs)
Beginning January 1, 2015, you can make only one rollover from an IRA to another (or the same) IRA in any 12-month period, regardless of the
number or types of IRAs you own (see IRS Announcement 2014-32). Generally, a rollover is a tax-free withdrawal of all or part of the assets from
one IRA that you contribute (roll over) within 60 days to another (or the same) IRA. You can, however, continue to make an unlimited number of
trustee-to-trustee transfers (transfers directly between IRAs). You can also make an unlimited number of rollovers from traditional IRAs to Roth
IRAs (“conversions”). If you are considering requesting a distribution from your IRA for rollover to another IRA, you should strongly consider a
trustee-to-trustee transfer instead. Please consult your tax advisor prior to effecting a rollover.
Please consult your tax advisor for complete details of the rules stated above.
Securities are offered by properly licensed registered representatives of NYLIFE Securities LLC, (member FINRA/SIPC), a Licensed
Insurance Agency, 51 Madison Avenue, New York NY 10010.
Important State Income Tax Withholding Information
For residents of Arkansas, California, Delaware, Georgia, Iowa, Kansas, Maine, Maryland, Massachusetts, Nebraska, North Carolina, Oklahoma,
Oregon, Vermont , Virginia, and Washington DC: As of January 1, 2018, state withholding is generally required if federal income tax is being withheld.
For residents of Arkansas, California, Georgia, Maine, North Carolina, Oregon, and Vermont: If federal income tax is being withheld, state
income tax withholding is generally required, unless you elect not to have state income tax withholding apply.
For residents of Michigan: We are required to withhold state income tax from the taxable portion of your payments, unless you provide us
with a properly completed Form MI W-4P and you claim an exemption from withholding.
For residents of Connecticut: We are required to withhold state income tax from the taxable portion of your payments, unless you provide
us with a properly completed Form CT-W4P and you claim an exemption from withholding. An exemption may not be claimed for lump sum
distributions.
For residents of Arizona, Indiana, Louisiana, Maryland, Missouri, Montana, New Jersey, New Mexico, New York, Utah, and Wisconsin: As of
January 1, 2018, these states do not require withholding of state income taxes, but generally allow you to elect to have withholding apply.
Certain exceptions and special rules apply in some states.
For residents of Arizona: State income tax withholding is voluntary and only applies to periodic payments. Withholding election requests
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