401(k) Plan - My Lowe's Life

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Hardship Withdrawal request forms are available on theemployee portal at www.myloweslife.com (My Home >Lowe’s Forms > Wealth Related) or at the Plan’s web site,accessible through the employee portal atwww.myloweslife.com (My Wealth > Wealth Related QuickLinks > 401(k) > 401(k) at ADP) or directly atwww.mykplan.com, or by calling 1-877-236-5693 andspeaking with a Plan representative You will be required tosubmit documentation for your hardship request including anotarized statement. When you call, you’ll need your SocialSecurity Number and PIN.If your request for a hardship withdrawal is granted, yourcontributions will be suspended for the next six (6) months inthe Lowe’s 401(k) Plan, the Employee Stock Purchase Plan(ESPP), and any non-qualified deferred compensation plans inwhich you participate (e.g., Benefit Restoration Plan (BRP),Cash Deferral Plan (CDP)). Additionally, during the sixmonths following your hardship withdrawal, you may notexercise any stock options granted to you. Unless you make achange to your 401(k), BRP, or CDP deferral elections duringyour suspension period, at the end of your suspension periodyour salary deferral(s) will resume at the percentage(s) in effectwhen you took the hardship. Moreover, depending on the dateof your hardship distribution, by taking a hardship distributionyou may lose the ability to to re-enroll in the BRP or CDP forthe next plan year. If you were a participant in the ESPP, youwill need to enroll during the next ESPP enrollment periodfollowing your six month suspension period – you will not beautomatically enrolled in the ESPP. You may not request ahardship withdrawal after reaching age 59 ½ unless you havepreviously taken the one-time distribution of your entireaccount balance available for active employees age 59 ½ andabove.Other ImportantInformationThe following section describes other important informationyou should know about the 401(k) Plan. Please review itcarefully so that you can make informed decisions.Federal Income TaxConsequences∗Lowe’s has requested a determination letter from the InternalRevenue Service for the Plan as amended and restated effectiveFebruary 2, 2007. In this request, Lowe’s seeks approval thatthe Plan and related trust agreement satisfy the requirements ofSections 401(a) and 501(a) of the Internal Revenue Coderelating to qualification of the Plan and the tax-exempt status ofthe trust. The following discussion summarizes the federalincome tax consequences of participation in the Plan. Thefederal income tax aspects of the Plan are complex, and thisexplanation is not intended to be a complete description of thefederal income tax consequences of Plan participation. Forthese reasons, you and/or your beneficiary should consult withyour personal tax advisor on any questions you may have.Plan Contributions and EarningsSubject to the limitations imposed by the Internal RevenueCode, Lowe’s contributions to the Plan are deductible byLowe’s in the year they are made. You are not subject tocurrent federal income taxes on contributions by Lowe’s,including contributions made pursuant to your salary deferralelections. These contributions and the earnings on youraccount balances are not subject to federal income taxes untildistributed or withdrawn.Lump Sum DistributionA lump sum distribution is a distribution of your entire interestin the Plan within one taxable year, made as a result of yourdeath, or separation from service or after you reach age 59 1 ⁄ 2.Termination of your employment with a partipating employerin the United States so you can relocate to another country towork for a subsidiary or affiliate of Lowe’s that does notparticipate in the 401(k) Plan does not constitute a “separationof service,” and you will not be entitled to take a distribution ofyour account at that time.A lump sum distribution is subject to tax on the sum of theamount of cash received, and the fair market value of the∗Specific portions of this document, designated with an asterisk (*), constitutepart of a prospectus covering securities that have been registered under theSecurities Act of 193312
Lowe’s stock received, less the net unrealized appreciation (ifany) of such stock over its cost.In the case of a distribution that does not qualify as a lump sumdistribution, the reportable amount is the amount of cash andthe fair market value of any stock received.RolloverIf you receive a distribution of your account, you may be ableto defer taxes on the distribution by means of a rollover toanother qualified employer plan, a 403(a) plan (employerpurchased annuity plan), a 457(b) plan (plan sponsored by astate governmental or tax-exempt entity), or an IRA. Amountsthat are distributed and that are not rolled over will be subjectto tax at ordinary income tax rates. You should consult withyour personal tax advisor to determine whether a distributionshould be rolled over. A rollover that is not a direct rollovermust be completed within 60 days of the distribution from thePlan.Special TaxesIf you receive your distribution before you reach age 59 1 ⁄ 2, youmay be subject to a 10% premature distribution tax in additionto any other federal income tax.Income Tax WithholdingTaxable distributions from the Plan (other than hardshipwithdrawals) are subject to 20% federal income taxwithholding. Hardship withdrawals are subject to 10% incometax withholding unless you elect otherwise. You will be givenspecific information regarding the application of these rulesprior to receiving a distribution from the Plan.Additional InformationAfter you receive a distribution from the Plan, the Plan’s trusteewill provide you with an IRS Form 1099-R. The Plan’s trusteewill also file this form with the Internal Revenue Service. Thisform will tell you the taxable amount of your distribution andthe amount of any net unrealized appreciation. These forms aretypically mailed by January 31for all distributions made in theprevious calendar year.Beneficiaries401(k) PlanYou should name a beneficiary of your Plan account. You mayname a beneficiary on the Plan’s web site, accessible throughthe employee portal at www.myloweslife.com (My Wealth >Wealth Related Quick Links > 401(k) > 401(k) at ADP), ordirectly at www.mykplan.com. You may change yourbeneficiary at any time by updating your information on thePlan’s web site. If you are married and wish to designatesomeone other than your spouse as your beneficiary, you willneed to download the Beneficiary Designation Form from thePlan’s web site. Your spouse will need to sign the BeneficiaryDesignation Form, and your spouse’s signature must bewitnessed by a Notary Public.If you named a beneficiary on the Plan’s web site at any timeafter the date the ESOP merged with the Plan, this beneficiarydesignation will be used in the event of your death to distributeall your Plan account balances, including your ESOP account(if applicable).If you do not name a beneficiary, in case of your death, thebeneficiary of your Plan account will automatically be yourspouse, if you are married, or your estate, if you are single ordivorced. This rule applies to all your Plan accounts includingyour ESOP account (if applicable).However, if you are a Plan participant with an ESOP accounttransferred to the Plan when the ESOP was merged with thePlan, and you already had an ESOP Beneficiary Form on filewith the ESOP prior to the merger date, your previouslycompleted ESOP Beneficiary Form will be used in the event ofyour death to distribute your ESOP account balance under thePlan. In this case, your non-ESOP account balance under thePlan will be paid out under the Plan’s automatic Planbeneficiary rule (i.e., to your spouse or your estate), unless youalso completed and filed a separate Plan Beneficiary Form priorto the ESOP merger date.13
Page 6 and 7: You may contribute between1% and 50
Page 8 and 9: is made out directly to you (instea
Page 10 and 11: Distributions from thePlan∗Approx
Page 14 and 15: Benefit Assignment orTransfer∗You
Page 16 and 17: Claims ProcedureIf your claim for b

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