THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN
FOR SALARIED
EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on
March 27, 2020, which allowed Plan participants who were impacted from the coronavirus to elect a distribution of up to $100,000 from the Plan through December 31, 2020, with a waiver of the 10% early withdrawal tax penalty. Participants
may pay back the distribution over a three-year period from the date of distribution, without being subject to income taxes. If the distribution is not repaid to the Plan, participants have the option to pay the income taxes on the distribution over
a three-year period. Benefits paid to participants or their beneficiaries for the year ended December 31, 2020 include $81,281,844 in distributions under this CARES Act provision.
Under the CARES Act, all required minimum distribution requirements were waived for the year ended December 31, 2020.
Participant vested amounts are eligible to be paid upon retirement, death or other termination of employment.
All withdrawals and distributions are valued as of the end of the day they are processed, and may be subject to income tax upon receipt. Any non-vested Company contributions are forfeited and applied to reduce future Company contributions and Plan expenses. As of December 31, 2020 and 2019, the Plan had forfeiture credits of $13,257 and $56,208,
respectively.
Notes Receivable from Participants
Eligible employees may borrow money from their participant accounts. The minimum amount that can be borrowed is $1,000. The maximum amount that can be borrowed
is the lesser of $50,000 reduced by the highest outstanding balance of any notes during the preceding twelve month period, or 50% of the participants vested account balance, excluding the participants
sub-account attributable to Company retirement contributions. Participants may have up to two notes outstanding at any time. The interest rate charged is a fixed rate established at the time of the application
based on prime plus one percent (4.25% and 6.50% at December 31, 2020 and 2019, respectively).
The CARES Act increased the maximum amount that
participants who are eligible for a coronavirus related distribution can borrow from their Plan accounts to the lesser of $100,000 or 100% of the participants vested account balance, if the loan was made within 180 days from March 27,
2020. In addition, participants with an outstanding Plan loan with repayment dates between March 27, 2020 and December 31, 2020 could delay their loan repayments for up to one year, with interest still accruing on the deferred payments.
Repayments, with interest, are made through payroll deductions. If a note is not repaid when due, the outstanding balance is treated as a taxable
distribution from the Plan.
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