Sallie Mae 2015 Annual Report Download - page 228

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The amount available for distribution of amounts deferred under the Plan not
constituting Grandfathered Funds on account of an unforeseeable financial emergency shall
be limited to the amount reasonably necessary to satisfy the emergency need (which may
include amounts necessary to pay any Federal, state, local, or foreign income taxes or
penalties reasonably anticipated to result from the distribution), and shall be determined in
accordance with Code Section 409A and the regulations thereunder. In all events,
distributions due to an unforeseeable financial emergency shall be made solely in accordance
with the provisions of Code Section 409A and related official guidance.
ARTICLE 11. ACCELERATED DISTRIBUTION FOR AMOUNTS DEFERRED
BEFORE JANUARY 1, 2005
Section 11.1. Availability of Withdrawal prior to the Commencement of Distributions.
With regard to Grandfathered Funds deferred into a Participant’s Distribution Option
Account, upon the Participant’s written election, the Participant may elect to withdraw all
or a portion of the amounts at any time prior to the time such Distribution Option Account
is otherwise payable under the Plan, provided the conditions specified in Sections 11.3, 11.4,
and 11.5 are satisfied. However, no amount may be distributed from deferrals, and earnings
attributable to such deferrals, that have been credited to the Plan less than two years. Amounts
in excess of Grandfathered Funds that are deferred into a Participant’s Distribution Option
Account and earnings credited to such amounts may not be withdrawn under Article 11.
Section 11.2. Acceleration of Periodic Distributions. Upon the Participant’s written
election, the Participant or Participant’s Beneficiary who is receiving installment payments
under the Plan may elect to have all or a percentage of the remaining installments that are
attributable to Grandfathered Funds credited to the Participant’s Distribution Option Account
distributed in the form of an immediately payable lump sum, provided the condition specified
in Sections 11.3, 11.4 and 11.5 are satisfied.
Section 11.3. Forfeiture Penalty. In the event of a withdrawal pursuant to Section 11.1, or
an accelerated distribution pursuant to Section 11.2, the Participant shall forfeit from the
sub-account of his Distribution Option Account from which the withdrawal is made an
amount equal to 10% of the amount of the withdrawal or accelerated distribution, as the
case may be. The forfeited amount shall be deducted from the applicable sub-account prior
to giving effect to the requested withdrawal or acceleration. The Participant and the
Participant’s Beneficiary shall not have any right or claim to the forfeited amount, and the
Company shall have no obligation whatsoever to the Participant, the Participant’s
Beneficiary or any other person with regard to the forfeited amount.
Section 11.4. Minimum Withdrawal. In no event shall the amount withdrawn in accordance
with Section 11.1 or 11.2 be less than 25% of the amount credited to the Participant’s
Distribution Option Account immediately prior to the withdrawal.
Section 11.5. Suspension from Deferrals. In the event of a withdrawal pursuant to
Section 11.1 or 11.2, a Participant who is otherwise eligible to make deferrals under Section 4
shall be prohibited from making any deferrals with respect to the Plan Year immediately