SIP Summary Plan Description - Vought Aircraft Division

include a 10% penalty tax that will apply in many instances to the early withdrawal of pretax
contributions and earnings. See “Accessing Your Funds” on page 10 for more information.
After-tax Contributions
If you choose to make after-tax contributions to the Plan, your contributions will be made after
federal (and state, if applicable) income taxes have been withheld from your wages. Because
your after-tax contributions are taxed before they are placed into your account, only the
investment earnings on these amounts will be subject to income taxes when you withdraw them
from the Plan.
Withdrawal provisions for after-tax contributions are generally less restrictive than for pretax
contributions under federal tax laws, but the 10% penalty tax will apply in many instances to the
earnings portion, if any, of your after-tax withdrawals from the Plan. Withdrawal procedures
and requirements, as well as loan information, are explained in “Accessing Your Funds”
beginning on page 10.
Catch-Up Contributions
Participants who are age 50 or older are allowed to make additional pretax contributions to the
Vought SIP. These “catch-up” contributions are separate from your regular pretax and after-tax
contributions. The maximum catch-up contribution allowed by the IRS in 2009 is $5,500. The
IRS may adjust this maximum from time to time.
Additional details:
You can make “catch-up” contributions throughout the Plan Year if you are age 50 or older
or will become age 50 in that year – even if your 50 th birthday is as late as December 31.
The Company does not match your catch-up contributions.
Your catch-up contributions will be allocated in the same percentages to the investment
funds that you have selected for your regular SIP contributions.
Your catch-up contributions are always 100% vested and are treated like pretax contributions
for purposes of withdrawals.
Contribution Limits
Federal regulations place a number of limits on how much savings can go into the SIP, described
below.
Pretax Savings Limit
For 2009, the maximum dollar amount you may contribute to the SIP on a pretax basis is
$16,500. This limit applies to all employees. The Internal Revenue Service adjusts the limit from
time to time.
If you reach this pretax limit during a year, your additional contributions for that year will
automatically continue on an after-tax basis unless you access SIP Online or call the SIP Line to
stop your contributions. Beginning in January of the following year, your contributions will
automatically begin on a pretax basis unless you change your contribution allocation.
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