Question :
When am I subject to taxation?

Answer :
All of the distributions you take from your NDC account are subject to federal and state income taxes. Federal income tax withholding will apply to your distribution based on whether you were eligible to rollover the distribution.

Amounts distributed from the Plan are subject to a 10% premature distribution penalty tax if distributed prior to your attaining age 72. Amounts rolled over from a plan other than a governmental 457 plan will be subject to a 10% premature distribution penalty tax if distributed prior to attaining age 59½, unless an IRS exception applies.