You can contribute to the fund in any increment. Verizon employees with payroll deduction may contribute in increments of $7. You may also make lump sum deposits of $500 or more, with no limit. If your employer allows, you can contribute periodically via direct deposit as well. Additionally, contributions can be made via Bill Pay, ACH, check, or payroll deduction.
Interest earned on contributions is accumulated on a tax-deferred basis. This means that no taxes are due until money is withdrawn. Contributions to the plan are not tax deductible.
You may take a full withdrawal at any time and a partial withdrawal once every 12 months*. There is no requirement to take a distribution from the plan after you leave employment. In addition, because the plan is non-qualified, you are not required to take withdrawals when you reach 70½. You may leave your deposits with the plan as long as you like.
Participants may elect to purchase an annuity. Participants should consult with our Plan Advisor before making these decisions.
Participants may designate beneficiaries to receive their account balance in the event of the participant’s death. Beneficiaries have the right to take the entire account subject to current tax laws on the taxable portion. They may also leave the account in the Trust and change the name on the account to their own. Beneficiaries may also elect to take the account in the form of an annuity.
Contributions and earnings (principal and interest) are guaranteed by Nationwide Life Insurance Company, the funding agent. Nationwide manages the plan’s assets, which are commingled in a single fixed-income group annuity investment portfolio. The Fund is not guaranteed by the FDIC, NCUA or any federal or state agency.
*A $50 fee applies for a full distribution; a $25 fee applies for a partial distribution which cannot exceed 60% of the account balance. On withdrawals made by individuals not yet 59½ years old, a 10% excise tax imposed by the IRS may apply.
Our Specialists are available to answer your questions and assist you in joining the LUSP Trust. Call or email today!