How will PLSO distributions be taxed?
Your PLSO distributions are subject to federal income tax withholding. Since these payments have been identified as eligible rollover distributions, TRS must withhold 20 percent for income tax unless the eligible portion is rolled over into an eligible plan. To defer paying taxes on these payments, you may roll over all or a portion of the entire “eligible rollover distribution” amount to an eligible employer plan. For additional information on this topic, please contact your tax consultant or the Internal Revenue Service at 1-800-829-1040.
