Southwest Service Administrators, Inc.
IBEW Local Union No. 60 401(k) Plan
Frequently Asked Questions
How do I apply for my 401(k) Benefit?
Complete and print the Online Benefit Application and mail to the Fund Office at 2300 Buena Vista SE, Suite 127, Albuquerque, NM 87106
How do I find out how much my 401(k) Benefit will be?
Look up your benefit online at www.prudential.com
How do I change my address?
Complete and print the Online Change of Address Form and mail to the Fund Office at 2300 Buena Vista SE, Suite 127, Albuquerque, NM 87106 or Fax to (602) 249-3795
How do I designate or change my beneficiary?
Complete and print the Online Beneficiary Form and mail to the Fund Office at 2300 Buena Vista SE, Suite 127, Albuquerque, NM 87106 or Fax to (602) 249-3795
How do I change my Federal Tax Withholding?
Complete and print the Online W-4P Federal Tax Form and mail to the fund office at 2300 Buena Vista SE, Suite 127, Albuquerque, NM 87106
401(k) CONTRIBUTIONS (ELECTIVE DEFERRALS)
If provided under the Collective Bargaining Agreement or Participation Agreement applicable to you, you may elect to make 401(k) Contributions to the Plan, provided you are not a Highly Compensated Employee for the Plan Year. If you elect to make 401(k) Contributions, you authorize your Employer to reduce the Compensation you would regularly receive by a specified amount. This amount is then deposited in your Account as a 401(k) Contribution. You do not pay federal income taxes (or, in many states, state income taxes) on Compensation you contribute to the Plan as 401(k) Contributions for the year in which you make the contribution. Those amounts are not taxed until they are distributed to you from the Plan.
How to Make an Election
To make 401(k) Contributions, you must notify the Fund Office of your election in accordance with the rules established by the Trustees.
Amount of 401(k) Contributions
You may contribute from 3% to 20% of your Compensation (in whole percentages) as your 401(k) Contributions.
401(k) Contributions will be made from your Compensation as provided in your election beginning as soon as reasonably practicable after the date your election is effective.
Change in Amount of 401(k) Contributions
You may change the amount your Employer withholds from your future Compensation effective the first week of January or the first week of July. To change the amount of your 401(k) Contributions, you must notify the Fund Office in accordance with the rules established by the Trustees.
Am I allowed to take a withdrawel from my 401 (k) Benefits?
Normal Retirement Date:
The date you are entitled to retire with full benefits. Your Normal Retirement Date is the date you reach age 65 or the fifth anniversary of the date you commence participation in the Plan, whichever comes last.
Early Retirement Date:
The date you completely withdraw from employment for wages or profit in the electric trade and industry at or after attainment of age 55.
Any of the following: (1) an employer that is a member of the Association and that employs persons covered under the Collective Bargaining Agreement; (2) any other employer that employs persons covered under the Collective Bargaining Agreement, or (3) any entity that has entered into a Participation Agreement, including, if applicable, the Union, the Association, the Board of Trustees, and any related entity. A Related Company is also considered part of the Employer under the Plan.
If the Fund Office has determined that you have incurred an immediate and heavy financial need, you may withdraw all or part of the Value of the following contributions held in your Account:
• 401(k) Contributions (Elective) (excluding investment earnings)
• Rollover Contributions (excluding investment earnings)
You may apply to the Board of Trustees for a hardship withdrawal and your application will be reviewed as quickly as possible after you provide all of the required forms and background information.
Financial Needs For Which Hardship Withdrawals Are Available
The financial needs for which you can get a hardship withdrawal are:
• medical expenses of you, your Spouse, or your dependents for the diagnosis, cure, mitigation, treatment, or prevention of disease
• purchase of your principal residence (excluding mortgage payments)
• tuition payments, related educational fees, and room and board expenses for post-secondary education for you, your Spouse, or your dependents
• prevention of your eviction from your principal residence or foreclosure on the mortgage of your principal residence
• funeral or burial expenses for your deceased parent, Spouse, child, or dependent
• expenses for the repair of damages to your principal residence that would qualify for a casualty loss deduction (determined without regard to whether the loss exceeds 10% of your adjusted gross income)
• any other event deemed to be an immediate and heavy financial need for which a hardship withdrawal is permitted under Code Section 401(k), as prescribed by the Internal Revenue Service in Revenue Rulings, Notices, or other documents of general applicabilityGenerally, your dependent for hardship withdrawal purposes is as defined by the IRS for purposes of receiving an income tax deduction, without regard to certain rules, including the rule precluding persons who have gross income for the year equal to or greater than the exemption amount from being claimed as dependents.
Demonstrating Need for Hardship Withdrawal
The Trustees will approve your hardship withdrawal if all of the following requirements are met:
• You have demonstrated a financial need listed above, and
• the withdrawal amount does not exceed the amount you need to meet your financial need, and
• you have obtained all other distributions and all non-taxable loans available to you from any plan maintained by your Employer or any Related Company, and
• you suspend your 401(k) Contributions to the Plan (and any other plan maintained by your Employer or any Related Company) for at least six months after receipt of the withdrawal.
Limitations on Hardship Withdrawals
Your hardship withdrawal may include amounts necessary to pay any federal, state, or local income taxes or penalties reasonably anticipated to result from the withdrawal.
Your hardship withdrawal will be effective as soon as practicable after Trustee approval. If you are married, your Spouse must consent to the withdrawal, and hardship withdrawals cannot be paid in an annuity benefit form.
Administrative expenses for Hardship WithdrawalsAny administrative expenses that are incurred directly with respect to your hardship withdrawal will be at your cost and allocated to your Account.