Cover sheet for Form 720MP

Clarifications to PBGC Form 720MP
for your
Roth Account Only

❖ If you also have a non-Roth account, you will receive another Form 720MP for that account.
❖ There are some special rules that apply to the payment of your Roth Account.
❖ Some of these special rules require clarification of the Form 720MP for payment of Roth Accounts as
follows:

CLARIFICATIONS
Form 720MP Section 2 Payment Election – clarifications applicable to Roth payments underlined
• Introduction: Please read the enclosed Special Tax Notice Regarding Non-Periodic PBGC Payments
From Designated Roth Account. Be sure you understand the tax implications of having PBGC pay
the lump sum directly to you or to a Roth individual retirement arrangement (IRA) or a designated
Roth account in a qualified retirement plan.
Please elect only one option - A or B. If you do not elect an option or if you elect more than
one option, PBGC will pay you according to option B.

•

Option A –for your direct rollover, you may transfer to a Roth IRA or a designated Roth account
in a qualified retirement plan.

•

Option C – Do not elect. The “Split my payment” option is NOT available for your Roth
account payment

•

Last Sentence on page 2: If you selected option A, complete Section D on page 5.

•

D. Rollover Information o Do not elect. Traditional IRA is not available for your Roth Account payment
o Qualified retirement Plan option is to a Roth Account in a qualified retirement plan