THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN
FOR
BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
Plan Withdrawals and Distributions
Participants may take in-service distributions of vested amounts from their accounts if they:
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Attain the age of 591⁄2, or
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Qualify for a financial hardship.
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The Internal Revenue Service (IRS) issued regulations governing financial hardship. Under the IRS regulations, withdrawals are permitted for
severe financial hardship.
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 $76,096,968 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 $30,533 and $63,088,
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. 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).
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