Citi Benefits Handbook
Taxation of Plan Participants
The Plan enjoys certain tax advantages because it is intended to be a long-term savings program for retirement. For example, under current federal income tax law, money in your Plan account is not taxable while it is held in your account.
You or your beneficiary will owe income taxes on the taxable portion of your distribution (all amounts other than contributions to your After-Tax Contribution Account and Roth accounts plus the earnings on Roth After-Tax Contributions under certain conditions) when you receive the money.