EMPLOYEE BENEFITS

KEEP ASSETS IN PLAN ACCOUNT, TAKE NO IMMEDIATE WITHDRAWALS

Money maintains tax-deferred status.

Money continues to be invested in the funds of your choice.

Allows you to retain control of your retirement savings.

You continue to leave your money in the MIT Supplemental 401(k) Plan.

You have the freedom to move your money among investment options available in the MIT Supplemental 401(k) Plan as your investment strategy changes.

You maintain access to your account balances for future needs.

You maintain your ability to choose a mix of withdrawal options in the future.

No income tax due until you begin making withdrawals.

SYSTEMATIC WITHDRAWAL PLAN

Can help you meet retirement living expenses.

Money remaining in your account continues to be invested in the funds of your choice.

Supplements other retirement income, such as Social Security and pensions.

Can fulfill your Minimum Required Distribution requirements.

Can avoid 10% early withdrawal penalty.

You decide which Systematic Withdrawal Plan method is best for you:

• Spread out over a specific time period, such as 10 or 20 years.
  
• A specific dollar amount.
  
  

You receive payments automatically, based on the frequency that you select.

You are able to change the amount and frequency of payments (unless your Systematic Withdrawal Plan method is set up to fulfill your MRD or to avoid the 10% early withdrawal penalty as this may have severe tax consequences).

You have access to additional assets for unexpected expenses.

You have access to your remaining account balances for unexpected expenses.

No taxes are due on amounts remaining in the MIT Supplemental 401(k) Plan.

Federal income taxes and state income taxes (of the state in which you reside at retirement) will be due at the rate in effect when the money is withdrawn. (Local taxes may also be due.)

Not subject to 20% mandatory tax withholding requirement unless Systematic Withdrawal Plan method is for a specific dollar amount or specific time period less than 10 years.

If you're under 59 1/2, you may be able to avoid the 10% early withdrawal penalty, provided your Systematic Withdrawal Plan method provides substantially equal periodic payments, based on your life expectancy or the joint life expectancy of you and your designated beneficiary.

LIFETIME ANNUITY

Can help you meet ongoing retirement expenses.

Will ensure that you and/or a beneficiary will have an income for a lifetime.

Supplements other retirement income, such as Social Security and other pensions.

Automatically fulfills your Minimum Required Distribution (MRD) requirements.

Will avoid 10% early withdrawal penalty.

Annuities are available through MIT's preferred providers:

• A fixed-income annuity provides a level income payment. Fixed Annuities are available through Travelers Life and Annuity Co. and The Hartford.
  
• A variable income annuity provides payments tied to the performance of the annuity's underlying investments. Variable Annuities are available through TIAA-CREF and The Hartford.
  
  

You decide which annuity option is best for you:

• Guaranteed payments over your lifetime (or yours and someone else's).
  
• With or without a guaranteed minimum period.
  
  

You receive monthly payments.

Guarantees payout until you die (or you and your annuity partner die, depending on the income options chosen).

With a variable income annuity, you get a lifetime payout that has the potential to keep pace with inflation.

Federal income taxes and state income taxes (of the state in which you reside at retirement) will be due at the rate in effect when the money is withdrawn. (Local taxes may also be due.)

If you're under 59 1/2, you will be able to avoid the 10% early withdrawal penalty tax.

ROLLVER IRA

Can give you access to investments besides those available in the MIT Supplemental 401(k) Plan, such as individual stocks or corporate bonds.

With a direct rollover, you can move your money without paying taxes immediately.

Allows you to retain control of your retirement savings.

You decide which financial institution will administer your Rollover IRA.

You direct a "rollover" of eligible money from your retirement Plan directly to your chosen Rollover IRA and indicate your investment choices.

You may be able to consolidate your accounts from your other employers' plans for easy access for future needs.

You have the ability to put your money into other investments allowed by the IRA you select.

The money in the Rollover IRA will be invested as you choose.

Money maintains tax-deferred status.

No income taxes are due on money moved directly to a Rollover IRA.

Federal income taxes and state income taxes (of the state in which you reside at retirement) will be due at the rate in effect when the money is withdrawn. (Local taxes may also be due.)

Avoids the 20% mandatory withholding tax requirement.

10% early withdrawal penalty tax applies on most withdrawals from the Rollover IRA prior to age 59 1/2.

PARTIAL WITHDRAWALS

Can be used to pay for a one-time large purchase, supplement other retirement income, and provide a reserve for emergencies.

Money remaining in your account maintains tax-deferred status.

Allows you to retain control of your remaining retirement savings.

You decide when and how much to withdraw (subject to 401(k) Plan withdrawal rules).

You have the freedom to move your remaining money in the Plan among the investment options in the 401(k) Plan.

You have access to your remaining assets for unexpected expenses.

You maintain ability to use other distribution options for remaining account balances in the future.

No income taxes are due on amounts remaining in the Plan until withdrawn.

Federal income taxes and state income taxes (of the state in which you reside at retirement) will be due at the rate in effect when the money is withdrawn. (Local taxes may also be due.)

20% mandatory withholding will apply as a "prepayment" toward your federal income taxes, and state withholding.

May be subject to the 10% early withdrawal penalty if withdrawal from your Plan is received prior to age 59 1/2.

FULL WITHDRAWAL

Provides you with all of your retirement savings when you need it.

You decide when to withdraw.

You can withdraw all of the money in your retirement Plan account.

Ten-year averaging for 401(k) Plan money may apply. To qualify, you must have been born before 1936.

Federal income taxes and state income taxes (of the state in which you reside at retirement) will be due at the rate in effect when the money is withdrawn. (Local taxes may also be due.)

20% mandatory withholding will apply as a "pre-payment" toward your federal income taxes.

May be subject to the 10% early withdrawal penalty if withdrawal from your plan is received prior to age 59 1/2.