Huntington Ingalls Industries Savings Plan ... - Benefits Connect

Huntington Ingalls Industries
Savings Plan SPD
March 2011
amounts, including all accumulated interest, are fully paid. An IRS Form 1099-R is issued
for the amount of the default and you are responsible for payment of all taxes and
penalties.
If You Have an Outstanding Loan and You Transfer
If you transfer to another business unit, you are still responsible for repaying outstanding
loans under the original loan terms — even if your new business unit does not participate
in the Huntington Ingalls Industries Savings Plan. You should contact the HIBC
immediately to coordinate payments.
If You Have an Outstanding Loan When Your Employment Ends
If you have an outstanding loan when your employment with Huntington Ingalls Industries
ends and you leave your entire account balance in the Savings Plan, you are not required
to pay the total unpaid balance immediately. In most cases, you can continue repaying
your loan over the repayment period established when you took out the loan.
After your employment ends, your loan repayments must be made by certified check,
cashier’s check, personal check, or money order, which must be received by the due date
each month to avoid default. If your loan is in default, you are treated as having received
a plan distribution for the amount of the loan and you are responsible for payment of all
taxes and penalties.
If you do not wish to make monthly loan payments or if you do not want to leave your
account balance in the Savings Plan when your employment ends, you must repay the
total unpaid balance immediately. If you do not repay the loan within 60 days, the unpaid
principal balance — plus any accrued unpaid interest on the loan — is treated as a plan
distribution. If you take a final distribution of your entire account balance and have an
outstanding loan, the loan automatically is defaulted or offset against any after-tax
contributions in your account to reduce your tax liability.
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