Darden Savings Plan How service is measured What is service? Service is generally your time of employment. Service is used to determine your eligibility for company matching contributions and your vested (ownership) interest in company matching contributions. For eligibility purposes, service counts the hours you are paid or are entitled to be paid toward the service requirement. Hours counted include vacation, sick time and other paid leaves of absence. You must complete 1,000 hours of service in an anniversary year before you are eligible to receive company matching contributions to the Darden Savings Plan. Does my prior service count for benefit eligibility? If you are re-employed, your prior service will count for benefit eligibility and vesting if: • You were vested in your account when you left the company or • Your break in service was less than 60 months Note: If you previously left the company, took a distribution, and lost the non-vested part of your company matching contributions, you can have this lost amount put back into your account if you are re-employed before the end of a five year break in service and you return the amount of the prior distribution within five years of re-employment. This is known as a buyback. Prior service credit for enrollment Do I have to meet a new service requirement if I leave the company and am later rehired? No. If you were previously eligible, you can begin contributing immediately upon rehire by contacting Wells Fargo. Effect on other benefit Effect on Social Security benefits Service definition Prior service credit for benefits
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Darden Savings Plan
How service is measured
What is service?
Service is generally your time of employment. Service is used to determine your eligibility for company matching contributions and your vested (ownership) interest in company matching contributions.
For eligibility purposes, service counts the hours you are paid or are entitled to be paid toward the service requirement. Hours counted include vacation, sick time and other paid leaves of absence. You must complete 1,000 hours of service in an anniversary year before you are eligible to receive company matching contributions to the Darden Savings Plan.
Does my prior service count for benefit eligibility?
If you are re-employed, your prior service will count for benefit eligibility and vesting if:
• You were vested in your account when you left the company or • Your break in service was less than 60 months
Note: If you previously left the company, took a distribution, and lost the non-vested part of your company matching contributions, you can have this lost amount put back into your account if you are re-employed before the end of a five year break in service and you return the amount of the prior distribution within five years of re-employment. This is known as a buyback.
Prior service credit for enrollment Do I have to meet a new service requirement if I leave the company
and am later rehired? No. If you were previously eligible, you can begin contributing
immediately upon rehire by contacting Wells Fargo.
What effect does making pre-tax or after-tax contributions have on
my Social Security benefits? There is no effect on your Social Security benefits because your pre-tax
and after-tax contributions are subject to Social Security taxes.
Effect on other company benefits What effect does making contributions have on my other benefits?
There is no effect on your other pay-related benefits from the company. Your pre-tax and after-tax contributions are included in your compensation for benefit determination.
Does the IRS set contribution limits?
Yes. You cannot contribute more than $18,000 in 2015, which is the annual IRS limit of your pre-tax contributions. This pre-tax limit applies to all contributions you may make during a calendar year to any employer-defined contribution plan (this includes 401(k) and 403(b) plans). If you are age 50 or older, you may contribute an additional amount ($6,000 in 2015) as catch-up contributions.
The IRS limits the total contributions to this plan to the lesser of $53,000 in 2015 or 100% of your compensation. Total contributions include your contributions and the company's contributions, but not any contributions you may have rolled in or plan loan repayments you may be making. Your contributions will be monitored and limited if you reach the annual IRS limit on pre-tax contributions or the maximum annual contributions limit.
If you contributed to another employer's plan during the year on a pre-tax basis, those contributions apply to the annual IRS limit on pre-tax contributions. Call Total Rewards Service Center at 1-888-374-3343 if you think you are over the IRS pre-tax limit.
Changing your contribution amounts
How can I change the amount I am contributing?
• You can change your contribution at any time by clicking Wells Fargo or calling the Wells Fargo Retirement Service Center at 1- 800-728-3123.
• You make changes in increments of 1%. • Your change will be effective on the next available pay period.
Can I change my pre-tax contribution election to after-tax if I reach the IRS maximum limits for contributions?
Yes. Once you reach the maximum pre-tax contribution limit, your pre-tax contributions will stop. If you would like to start (or increase) after-tax contributions, you may do so by clicking Wells Fargo or calling the Wells Fargo Retirement Service Center at 1-800-728-3123. With the start of the next calendar year, if you are still eligible, your contributions will revert to your pre-tax contribution election, unless you change it.
Your combined pre-tax and after-tax contribution election can't be more than 25%.
In addition, if you are age 50 or older, you may make pre-tax catch-up contributions, up to a separate IRS maximum limit of $6,000 in 2015.
Can I stop my contributions at any time?
Yes. You can stop your contributions by clicking Wells Fargo or calling the Wells Fargo Retirement Service Center at 1-800-728-3123. Your contributions will stop on the next available pay period.
Can I start contributing again at any time after I stop?
Yes. You can restart your contributions any time by clicking Wells Fargo or calling the Wells Fargo Retirement Service Center at 1-800-728-3123. Your contributions will start on the next available pay period after your request.
If your contributions stopped because you were on an unpaid leave of absence, contributions will automatically resume according to your last elections, including your investment direction, when you return to work.
If your contributions are suspended because you took a hardship withdrawal, you cannot resume contributions for six months.
Can I roll over money from another plan?
Yes. You may roll over pre-tax distributions from another employer's qualified plan, a 403(b) annuity, a governmental 457(b) plan, a conduit IRA or the deductible IRA contributions plus earnings from a traditional IRA. If a distribution from the other qualified plan or IRA is made payable to you, you must roll over the distribution within 60 days to avoid having to
To roll over your contributions, complete the Rollover Form and return to Wells Fargo. When you make a rollover, it must be in the form of a check made payable to Wells Fargo Institutional Retirement and Trust or a wire transfer.
Can I roll in a loan from another plan into this plan?
No. You cannot roll over an outstanding loan from your prior employer's 403(b) or qualified plan into this plan.
Will I be able to borrow from my rollover account?
Yes. As an active employee, you are eligible for a loan from your rollover account. You can borrow from your after-tax, rollover, prior (non-ESOP) company match and pre-tax contributions.
Loans
• You can apply for a loan at any time for any reason, provided you don't
have any other outstanding loans. You can view your available loan amount on-line by clicking Wells Fargo. To apply for a loan, call the Wells Fargo Retirement Service Center at 1-800-728-3123.
• You can model a loan when you call Wells Fargo. When you model a loan, you will get complete details including your weekly deduction and length of repayment.
• Provided Wells Fargo has a pre-authorization form on file from you, you won't have to sign any papers to get a general purpose loan (paperless loan). For a home loan, you need to complete and return certain forms.
• Paperless loans are processed within three business days. Home loans (which require paper forms) are processed within seven business days.
• You should receive your loan check within seven to ten business days.
• A minimum of $1,000 • A maximum of the lowest of:
o 50% of your account balance or $50,000, whichever is less. o $50,000 reduced by the highest outstanding loan balance you
may have had under this plan during the last 12 months. o A loan amount which requires a weekly repayment of an
amount equal to 50% of your 13 week net average pay.
You can view your available loan amount on-line at Wells Fargo.
Account available for borrowing You can borrow from your after-tax, rollover, vested company match or pre-tax contributions. Your earnings on these accounts are also available for a loan.
You cannot borrow from the ESOP stock fund.
• The maximum repayment term for a general purpose loan is five years;
if the loan is for a home purchase, the maximum is 15 years. • Loan repayments are made by payroll deduction. • You cannot make partial payments toward paying off your loan, but you
can repay in full at any time. • Interest rate is the prime rate plus 1% and is reset quarterly. • There is a $50 loan fee taken from the proceeds of the loan check.
Note: Your company match is not affected by taking a loan.
How loan is taken from account Loans are taken from available money sources (also known as accounts) in a specific order. The first source of money is, in its entirety, used for the loan, then as needed the next source of money is used, until your requested loan amount is reached. The specific order is:
• After-tax contributions • Rollover contributions • Vested company match • Pre-tax contributions
Your loan is taken pro rata across all available investment funds within the money sources from which you are borrowing.
• You repay your loan through payroll deductions. • Your loan repayments usually begin on the next available pay
period. • Your loan repayments post Tuesday evenings. Click Wells
Fargo or call the Wells Fargo Retirement Service Center at 1- 800-728-3123 on Wednesday to find out your outstanding loan balance.
• Your loan repayment will be invested back into the money types in the order they were taken (pro-rated). Example, if you take a loan on funds that were invested 75% pre-tax and 25% after-tax, each of your loan repayments will be invested (pro-rated) in the same 75% pre-tax and 25% after-tax format.
• Loan repayments are reinvested according to your current investment elections.
Can I pay off my loan at any time?
Yes. Click Wells Fargo or call the Wells Fargo Retirement Service Center at 1-800-728-3123 to find out your outstanding balance. Make a money order, cashier's check or certified check payable to "Wells Fargo Bank, N.A. as Trustee for Darden Savings Plan." Write your name and social security number on your payment (or on a separate sheet of paper attached to your payment) and mail to:
Wells Fargo Institutional Retirement and Trust DSR - D1118-026 1525 West WT Harris Blvd Charlotte, NC 28262
Note: You may pay off your loan early without penalty; however, it must be a lump sum payment that completes the loan, not partial payments.
What happens to my outstanding loan if I go on a leave of absence?
• If on a paid leave of absence, loan repayments will continue to be taken from your paycheck.
• If on an unpaid leave of absence: o You don't need to make loan repayments for up to six
months. o If you want to make loan repayments, make a money
order, cashier's check or certified check payable to "Wells Fargo Bank N.A. as Trustee for Darden Savings Plan." Write your name and social security number on your payment (or on a separate sheet of paper attached to your payment) and mail to:
Wells Fargo Institutional Retirement and Trust DSR - D1118-026 1525 W. WT Harris Blvd. Charlotte, NC 28262
o When you return to work from your leave at the end of
six months or earlier, your loan repayments will automatically begin again through payroll deductions.
o If you don't resume loan repayments by the end of the six month period, your loan will be considered in default.
What happens to my outstanding loan if I go on long term disability?
You can suspend loan payments for up to six months if on an approved long term disability leave. After six months, your loan will be considered distributed unless you resume payments of the outstanding loan balance.
What happens to my outstanding loan when I leave the company?
When you leave the company, your loan will be considered distributed unless you choose to repay your entire outstanding loan balance within 90 days from the date of the last payment and before you receive a distribution of your account.
Even if you want your account to remain in the plan after you leave the company, any outstanding loan that is not repaid will be treated as a taxable distribution and reported to the IRS.
What happens to my outstanding loan if I die?
Your loan will be considered a distribution to your estate and will be
taxable.
Home purchase loan
Are the terms for a home loan different than the terms for a general
purpose loan under the plan? Yes. The following are terms that differ between a home loan and a
general purpose loan:
Loan term Home purchase General Purpose Maximum repayment period 15 years 5 years
Minimum repayment period 5 years, 1 month 1 month
While on long term disability
When you leave the company
When you die
Terms of a home loan
Home loan interest not deductible Is the interest portion of my home loan repayments deductible for
federal income tax purposes? No. The interest portion of repayments on a home loan is not tax
deductible, because loans from the plan are not mortgage loans.
Loan taxes
Taxes on loan
Is a loan taxed?
No. Taxes are not withheld from your loan check. However, if you stop repaying your loan and it goes into default, you will owe taxes on the part of your outstanding loan balance that was from taxable sources. The non- taxable portion is any loan made from after-tax contributions, except for the investment earnings on the after-tax contributions. All other sources are taxable.
Can I make loan repayments on a pre-tax basis?
No. You can only repay your loan on an after-tax basis.
Catch-up Contributions Additional Information
You are eligible to make "Catch-up" Contributions if you are at least age 50 by December 31, 2015, and your pre-tax contributions meet one of the following limits for 2015:
• You defer the maximum 25% pre-tax percentage allowed by the DSP. Or,
• Your pre-tax contributions will total $18,000 in 2015 by your final check for the
year.
Your "Catch-up" Contributions for the 2014 calendar year will be any pre-tax contributions that exceed the lesser of those limits, up to a maximum of $6,000 in 2015.
Taxes on loan repayment
Eligibility
Details
• "Catch-up" Contributions will be invested in the same funds as your other Darden Savings Plan pre-tax contributions.
• "Catch-up" Contributions are not eligible for the company match. • You may discontinue your "Catch-up" Contributions at any time, but the amount
already contributed will remain in your DSP account. • If you do not reach one of the maximum contribution limits, all or part of your
"Catch-up" Contribution will be recharacterized as a regular pre-tax contribution. Such recharacterized amounts will not be eligible for the company match.
• If you need to make a Hardship Withdrawal from the Plan, your "Catch-up" Contributions will be suspended for six months along with your regular contributions. You will need to notify Wells Fargo at the end of the suspension period if you wish to restart "Catch-up" (or any other) Contributions to the Plan.
Enrollment Eligible participants will receive a Darden Savings Plan 2014 "Catch-up" Contribution Election and Suspension Form from Wells Fargo. Once Wells Fargo receives and processes your completed form, deductions will start with the next available paycheck and will be spread evenly over your remaining paychecks for the year.
You can select a "Catch-up" Contribution rate from 1% to 100% of your eligible pay up to a maximum of $6,000 in 2015. You should only choose 100% if you are already contributing the $18,000 in 2015 regular contribution maximum.
To determine your individual "Catch-up" Contribution rate, divide the amount you would like to contribute as a "Catch-up" Contribution (up to $5,500 in 2014) by the remaining number of payrolls in 2014 (click Pay Period Schedule link to the right). Then divide your weekly contribution dollar amount by your weekly gross pay to determine the appropriate percentage.
Example: Your annual income is $25,000, you're currently contributing the maximum pre-tax percentage of 25% and you want to contribute the maximum "Catch-up" Contribution amount of $5,500. If there are 44 payroll periods remaining, your weekly "Catch-up" Contribution amount is $125 ($5.500 divided by 44) or a rate of 26% ($125 divided by your weekly gross pay of $480.76). Your total contribution is 51% (25% regular plus 26% "Catch-up" Contribution). Rounding was used in this example.
The IRS pre-tax deferral limits for all 401(k) participants and the "catch-up" deferral limits are as follows:
Year IRS 401(k) Pre-tax
Deferral Limit for all 401(k) Participants*
"Catch-up" Limit for Participants 50 years
or older
Total Pre-tax and "Catch- up" Limit for Participants
completing another "Catch-up" Contribution Election and Suspension Form. Obtain additional forms by calling the Wells Fargo Retirement Service Center at 1-800-728- 3123.
If you have any questions, please contact Wells Fargo:
With record sales, how can my match be down? With record sales, how can my company match be down?
Two good measures of a company's performance are its sales and earnings per share (EPS). EPS is a term used in evaluating the profitability and success of a company on a per-share basis. It is calculated by taking the total earnings and dividing it by the number of common shares outstanding. EPS is recognized as one of the best measures of a corporation's profitability. Profit generally is the revenue a company receives as a result of its sales, in our case the money customers pay for meals at our restaurants, subtracted by the cost of providing goods or services, in our case, the labor, advertising, utilities and other costs of running our restaurants. If our cost of doing business increases, it is possible that our profitability and EPS will decline even if its sales go up.
When we analyze our own performance, we focus on the keys to our long-term success, which we gauge by EPS, sales and same restaurant guest count growth (the number of entreés sold compared to the previous year).
As indicated in the following chart, our DSP match formula focuses on all these factors. The formula has been adapted for our newer operating companies, which are growing in different proportions compared to Olive Garden. When both guest counts and earnings are off compared to the previous year, the DSP match will be lower, even in quarters of record-breaking total sales.
The company match is currently based on:
• Quarterly EPS Growth compared to the same quarter last year, and • Quarterly Performance based on guest count growth at all Darden operating
companies compared to the same quarter last year.
Quarterly Darden EPS Growth vs Last Year
Company Match % if Quarterly Performance HIGHER vs Last
Year
Company Match % if Quarterly Performance LOWER vs Last
Yes. You will receive a quarterly participant statement showing all activity in your account. Your statement will be sent to your home address. To update your address, go to the HOME page on My Total Rewards and click on “Updates Address” at the top of the page. .
You can also elect to have your quarterly statement e-mailed to you in lieu of or in addition to the printed statement. Log on to Wells Fargo for details.
Volatility of the stock market is of concern to all investors. Being knowledgeable about your investments and your retirement goals is one key to coping with the uncertainties of a "bear" market.
Only you can ultimately decide how best to manage your retirement account, but note that the principles of sound investing are directly applicable to any market situation.
Not even financial experts know when markets will improve or decline, but most agree that maintaining a well-diversified portfolio is one of the best ways of reducing risk and potentially producing steady returns. Developing a sound diversification strategy for your portfolio involves careful consideration of several factors including:
• Your Investment Horizon - How long will you hold investments, particularly retirement investments, before you need to use the money?
• Your Risk Tolerance - How comfortable are you with fluctuations in the value of your investments?
To properly diversify your portfolio, you will need to know how these and other factors work together. Keep in mind that diversification alone is not a guarantee of a profitable overall return.
You can learn more by visiting Wells Fargo. Click "The Right Mix Of Investments" under Planning for Retirement for a good primer on investing.
What conditions do I have to meet to take a hardship withdrawal?
You can take a hardship withdrawal from the plan if your personal situation fits within the IRS definition of hardships:
• Post-secondary tuition and related educational fees, including room and board expenses, for up to the next 12 months for you, your spouse or your dependent
• Prevention of foreclosure or eviction from your primary residence • Purchase of your primary residence
• Unreimbursed medical or dental expenses in excess of $200
Before you make a hardship withdrawal, you must exhaust all other loan and withdrawal options available under the plan. With a hardship withdrawal, you are subject to ordinary income tax and penalties (see tax section below). You are also suspended from contributing to the plan for six months.
If you have an outstanding loan, you have to continue making loan repayments.
Does my hardship need to be approved?
Your hardship withdrawal request is reviewed by Wells Fargo. You will be asked to provide documentation to support the hardship when you apply.
What money can I withdraw from my account for a qualifying
hardship? After you have exhausted all other withdrawal and loan options under the
plan, you can withdraw the amount you need to meet your hardship situation, but not more than the vested amount of your pre-tax contributions.
• You cannot withdraw more than you need to meet your financial hardship, plus taxes.
• You can also withdraw an estimate of the taxes you may owe because of the withdrawal. You must do this when you request your hardship withdrawal.
• Your hardship withdrawal must be at least $200.
Are there any restrictions on when or how much I can withdraw?
Investment earnings on pre-tax contributions earned after December 31, 1988 aren't eligible for hardship withdrawals. However, if you are at least age 59½, you may be able to take a regular withdrawal (you must still be working for Darden) and receive these earnings.
Also, your hardship withdrawal must be at least $200.
Do I have to pay taxes on my hardship withdrawal?
Yes. The taxable portion of your hardship withdrawal is subject to ordinary income taxes.
You cannot roll over hardship withdrawals to an IRA, 403(b), or any other qualified plan.
Taxable distributions may be subject to an additional 10% penalty tax unless:
• You reach age 59½ • You leave the company during or after the year you reach age 55 • The distribution does not exceed your tax deductible medical
expenses • You are disabled (as defined by the Internal Revenue Tax code)
You will be provided with more information at the time of a distribution. In addition, you should consult a personal tax advisor to determine exactly what taxes you will have to pay.
How to obtain a hardship withdrawal How do I obtain a hardship withdrawal?
You can request a hardship withdrawal by calling the Wells Fargo Retirement Service Center at 1-800-728-3123. You will be asked to provide documentation to support the hardship.
Once approved by Wells Fargo, a check for your hardship withdrawal request is normally processed within seven days.
What can I withdraw?
The Darden Savings Plan is designed to help you reach your long-term financial goals through tax-deferred savings. You can also make after-tax contributions. While you can make withdrawals, they are subject to income tax and penalties (see tax section below).
• You can withdraw the value of your after-tax contributions with
investment earnings, for any reason (unmatched after-tax contributions will be withdrawn before matched after-tax contributions).
• You must withdraw a minimum of $50. • Your withdrawal may be subject to an early withdrawal penalty
prior to age 59½. • Your company match will be suspended for four quarters
(suspension of company match does not apply to loans).
• You pay a $5 check fee for each withdrawal. • You can withdraw the value of your rollover contributions with
investment earnings, for any reason, and without a suspension of the company match.
• After you reach age 59½, you can take a withdrawal of all pre-tax contributions and investment earnings.
Withdrawals are made in cash.
Required distributions Do I ever have to make withdrawals from the plan?
You must take a distribution from your account by age 65 if you are retired or no longer working for the company.
You must also take a distribution from your account if you terminate from the company after age 65.
Do I have to pay taxes when I take a withdrawal?
• You do not pay taxes on any after-tax contributions, since this money has already been taxed.
• You do pay ordinary income taxes on the taxable portion of the money you receive. The taxable portion includes any investment earnings on pre-tax and after-tax contributions included in the distribution.
To reduce any tax liability on after-tax money, the withdrawal is first taken from any after-tax contributions you made before 1987. Then the withdrawal is taken pro rata from remaining post-1986 contributions and investment earnings on all after-tax contributions.
Taxable distributions may be subject to an additional 10% penalty tax unless:
• You reach age 59½ • You leave the company during or after the year you reach age 55 • The distribution does not exceed your tax deductible medical
expenses • You are disabled (as defined by the Internal Revenue Tax code)
You can defer taxes by rolling over the taxable portion of the regular withdrawal to another qualified plan or IRA. However, if you are taking a hardship withdrawal, you cannot roll over any pre-tax contributions.
You will be provided with more information at the time of a distribution. In addition, you should consult a personal tax advisor to determine exactly what taxes you will have to pay.
How do I apply for a withdrawal?
Taxes
How to obtain a withdrawal
You can request a regular withdrawal by calling the Wells Fargo Retirement Service Center at 1-800-728-3123.
Your withdrawal check is normally processed within three business days.
Impact of divorce
What happens to my DSP benefits if I get divorced?
Your benefit under the plan will only be affected if you are required to comply with a Qualified Domestic Relations Order (QDRO).
Depending on the terms of your QDRO, a portion of your benefit may be payable to another person known as an alternate payee. An alternate payee can be your spouse, ex-spouse, child or other qualified dependent.
If a portion of your benefit is determined to be payable to an alternate payee, your account will be divided into TWO accounts:
• A new account that will contain the amount payable to the alternate payee, and
• Your original account, which is reduced by the amount payable to the alternate payee.
When you are served with a QDRO or a domestic relations order (DRO), certain transactions to your account won't be allowed until the alternate payee account is established or the Domestic Relations Order (DRO) is determined not to apply. The transactions that are affected are:
If you have any questions about your account and the QDRO, contact Total Rewards Service Center at 1-888-374-3343.
When ex-spouse can get plan benefit Do I have to retire for my ex-spouse to collect a benefit under the
plan? Not necessarily. Your ex-spouse will receive a benefit determined under
the terms of the Qualified Domestic Relations Order and the terms of the plan. If your ex-spouse leaves the separate account in the plan, it will be subject to a quarterly account maintenance fee.
Who should I contact about my benefits under this plan if I am
Contact Total Rewards Service Center at 1-888-374-3343.
Leaving the company
When can I get my money?
You can receive a distribution of your vested account if you leave the company for any reason.
You can also receive a distribution of your vested account if you are permanently and totally disabled.
Is my account automatically distributed when I leave the company?
When you leave the company, you will automatically receive a cash distribution if your account balance, excluding any portion relating to a rollover from another plan or IRA, is $1,000 or less.You can choose to receive cash and a stock certificate for any Darden stock in your account.
If your account balance, excluding any portion relating to a rollover from another plan or IRA, is greater than $1,000, you can leave your money in the plan until you reach age 65.
You will be notified by the recordkeeper if your account will be paid out automatically. You must respond to this notice within 30 days to roll over the taxable portion of your distribution to another employer's 403(b) or qualified plan or IRA. If you don't respond to this notification within 30 days, your account will be paid to you and taxes will be withheld.
Leaving your money in the plan Can I leave my money in the plan after I leave the company?
Yes, as long as your account, excluding any portion relating to a rollover from another plan or IRA, is at least $1,000. However, when you reach age 65 after leaving the company, you must receive a distribution of your account.
If your account remains in the plan, you can change the investment of your account. Also, your account will be subject to a quarterly maintenance fee.
If your account remains in the plan, you cannot take a new loan from your account. If you have an outstanding loan when you leave the company and you choose to leave your money in the plan, your unpaid loan will be considered distributed and taxable, unless you repay it within 90 days.
Distribution eligibility
Automatic distributions
Age-required distributions
What are age-required distributions?
Terminated employees must generally take a distribution by age 65. If you retire, you can defer your distribution until one year after you are age 65. If you retire after age 65, or in the year you turn 65, you must take an immediate distribution of your account. If you elect a rollover to an IRA and you are age 70½, a Required Minimum Distribution must first be paid to you.
What forms of payment are offered under the plan?
If your account is not automatically paid out, your distribution will be paid in cash. However, you may elect to receive the balance of your Darden Stock Fund and/or Darden ESOP Stock Fund in shares of Darden Restaurants Common Stock.
Installment and annuity payments
Can I take my money out in regularly recurring payments?
Regularly recurring payments are also known as installments and annuities.
• To be eligible for installment payments, you must be either retired
or disabled and have a vested balance in the plan as of June 1, 1990.
• This plan does not allow annuities. However, you can take a
distribution of your account to a financial institution or insurance company that provides this form of payment.
How do I apply for a distribution?
You can apply for your distribution by calling the Wells Fargo Retirement Service Center at 1-800-728-3123.
Your distribution will be paid in cash. However, you may elect to receive the Darden Stock Fund and/or Darden ESOP Stock Fund balances in shares of Darden Restaurants Common Stock.
If you elect to have your distribution paid in company stock for a rollover, you should confirm with the receiving institution that it can accept the stock.
Note: You will receive an automatic cash distribution of your account if the account, excluding any portion related to a rollover from another plan or IRA, is less than $1,000. You will be notified by the recordkeeper of an automatic distribution of your account. You must respond to this notice within 30 days if you want to roll over your account to another employer's 403(b) or qualified plan or IRA. If you don't respond to this notification within 30 days, your account will be paid to you and taxes will be withheld.
Your check will normally be processed within seven business days.
If you are receiving company stock in your distribution, you can expect to receive your stock certificate within four to six weeks after your distribution is approved.
Taxes when leaving the company Do I have to pay taxes when I leave the company and take a
distribution from the plan? Yes. In general, the taxable money you receive from this plan is subject to
ordinary income taxes. The taxable portion is any other portion of the distribution, including any investment earnings on after-tax contributions included in the distribution. The non-taxable portion of a distribution is any after-tax contributions.
When you receive a Darden Savings Plan distribution, including the value of any outstanding loan balances, you will have to pay taxes. If you directly roll the taxable portion of your distribution including an amount equal to any loan balance, into another qualified plan or IRA, you can delay paying taxes. Any portion of a distribution (including any outstanding loan balances) that you do not roll over is subject to 20% federal income tax withholding and may be subject to other state and local taxes and penalties.
If your distribution payment is made in company stock and you are not rolling it over, tax withholding will be taken from any available cash as part of your distribution.
Taxable distributions may be subject to an additional 10% penalty tax unless:
• You reach age 59½ • You leave the company during or after the year you reach age 55 • The distribution does not exceed your tax deductible medical
expenses • You are disabled (as defined by the Internal Revenue Tax code)
You will be provided with more information at the time of a distribution. In addition, you should consult a personal tax advisor to determine exactly what taxes you will have to pay.
Who do I notify with my address change after I leave the company?
You should report your address change to Wells Fargo if you no longer work for the company. Click Wells Fargo or call the Wells Fargo Retirement Service Center at 1-800-728-3123.
Your beneficiary will automatically receive your vested account balance.
If you die while you are still working for the company, your account becomes fully vested.
If you did not choose a beneficiary or your beneficiary died before you, your account will be paid to your estate.
How is my account paid when I die?
If your accounts are $5,000 or less, a single sum payment will be made to your beneficiary as soon as practical.
If your accounts exceed $5,000, your beneficiary must receive a distribution of your vested account balance within five years of your date of death.
• If your beneficiary is not your spouse, he/she must take a lump sum distribution.
• If your beneficiary is your spouse, he/she can leave the money in the plan until you would have been 70½, or can rollover the distribution into an IRA, or another employer's qualified plan.
If you have a loan outstanding when you die, your outstanding loan balance will be considered a distribution to your estate.
How does my beneficiary apply for a benefit?
Your beneficiary should contact Total Rewards Service Center at 1-888-374- 3343. Before a benefit can be paid, your beneficiary must provide a:
• Copy of the death certificate • Completed notarized form attesting to the death and indicating form of
requested distribution.
Will my beneficiary have to pay taxes?
• Your beneficiary will generally have to pay taxes on the portion of your account that is not the result of after-tax contributions.
• If your beneficiary is your spouse or your former spouse who is eligible for benefits under a Qualified Domestic Relations Order, he/she can rollover this distribution to an IRA or other employer-sponsored qualified plan.
How benefit is paid
How to apply for benefit
Taxes
• Because everyone's situation is unique, your beneficiary should work with an attorney or tax advisor to determine specific tax liability.
