How does my profit-sharing account grow?
The money in your profit-sharing account can grow from several sources:
- Your employer makes monthly contributions to your account.
- The investments in your account can earn interest and dividends.
- The stocks you own as part of your account can increase in value over time.
Do I pay taxes on my profit sharing?
Your profit-sharing plan is tax deferred: you do not pay taxes on the contributions or potential earnings in your account.
How does tax-deferral affect my profit-sharing balance?
In 30 years, a tax-deferred account balance could be as much as 20% greater than it would be in a taxable account. You pay taxes only when you take money out of your account, typically after you retire when your tax bracket will likely be lower than during your peak earning years.
How do I know if I am a participant in the profit sharing plan?
In general, if you are working for an employer, who has a collective bargaining agreement or participation agreement with one of the local unions participating in this Plan and that agreement requires contributions to be made to this Profit Sharing Plan, you are eligible to become and remain a participant. You will become a participant as of the first day for which a contribution is made on your behalf. Work, for which contributions are paid on your behalf to the Plan, is known as covered employment.
Who pays the cost of the profit sharing plan?
The entire cost of the Profit Sharing Plan is paid for by employer contributions. No member contributions are permitted.
What is an individual account?
Once you become a participant in the Plan, an Individual Account, including all balances of accounts that have merged with and became part of the Plan, is established for you as of the following Valuation Date to account for your benefits. All employer contributions made to the Profit Sharing Plan on your behalf will be credited to your Individual Account and your Individual Account will be adjusted for earnings, gains, losses and administration expenses.
When can I start receiving payments from my profit-sharing plan?
You are eligible to receive a payment from the amount in your Individual Account under any of the following circumstances:
- If you reach age 65 and have withdrawn from covered employment for at last 60 days;
- If, regardless of your age, you have withdrawn from covered employment and have had no employer contributions credited to your Individual Account for at least six consecutive months;
- If you have been totally disabled for at least one month, and you are no longer able to return to work as a construction worker as determined by the Board of Trustees;
- If you retire and receive a pension from the Iron Workers Pension Plan of Western Pennsylvania; or
- If you retire after age 55 and receive a pension from another pension plan established under a collective bargaining agreement with the International Association of Bridge, Structural and Ornamental Iron Workers
Can I modify my profit-sharing portfolio?
To modify your current investment portfolio to match your Model Portfolio, log in to your account and choose the following options:
- Change My Investments
- Redirect Current Balance and Future Contributions
- To change your choices, enter the percentage in the appropriate box under "New Transfers & Elections." Remember that all the percentages must total 100%.
If you'd prefer to speak to a Financial Advisor, call Participant Account Services at 800-377-9188.
Can I receive my retirement benefit earlier if I really need it?
The Plan provides for Hardship and In-Service Withdrawals.
Hardship withdrawals
You are allowed to withdraw all or a portion of the amount credited to your Individual Account on or after January 1, 1994 if you can show that you, your spouse, or your dependents have an immediate and heavy financial need.
Immediate and heavy financial need is limited to:
- Unreimbursed out-of-pocket expenses necessary for medical care for you, your spouse, your children, or your dependents;
- The cost of purchasing a principal residence for yourself (excluding mortgage payments);
- Payment of tuition and related educational fees for primary, secondary, post secondary, or special education for you, your spouse, your children, or your dependents;
- The need to prevent eviction from your principal residence and/or foreclosure of the mortgage on your principal residence;
- Payment of normal funeral expenses for your spouse, your parents, or your children, including cremation, burial plot or crypt, casket or vault, opening and closing of burial plot or crypt, and up to $1,000 for a monument;
- Bankruptcy. The amount entered cannot be less than $1,000. Evidence of your financial need must be the Order for Relief under Chapter 7 or Chapter 11 of the Bankruptcy Code or the Order confirming your bankruptcy Plan under Chapter 12 or Chapter 13 of the Bankruptcy Code, where the Participant is the Debtor. Details of this provision and to its applications should be requested from the Plan Office.
The amount you withdraw cannot be in excess of the amount needed as presented above plus an additional amount for federal income taxes and penalties reasonably expected to result from the withdrawal.
In-service withdrawals
You may receive a withdrawal only from the amount credited to your Account on or after January 1, 1994. This portion of the Account is referred to as "New Money".
In order to receive an in-service withdrawal, you must have a total of at least 60 months of participation in the Plan. A month of participation is any calendar month from and after January 1, 1983 for which an employer contribution has been made to the Profit Sharing Plan on your behalf.
The minimum withdrawal is $1,000 or the balance of your new money if less. The maximum withdrawal is $50,000.
In-service withdrawals can be made only once every six months.
The application must be made in writing on a form furnished by the Plan Office.
