THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN
FOR
BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
December 31, 2023 and 2022
Plan Withdrawals and Distributions
Participants may take in-service distributions of vested amounts from their accounts if they:
|
|
|
Attain the age of 591⁄2, or
|
|
|
|
Qualify for a financial hardship. |
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.
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, 2023 and 2022, the Plan had forfeiture credits of $41,771 and $9,722,
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 (9.5% at December 31, 2023 and 8.5% at December 31, 2022).
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.
9