This excerpt taken from the HPQ 8-K filed Mar 22, 2005.
DISTRIBUTION OF ACCOUNT BALANCE
4.1. Time and Form of Payment Elections.
(a) The Deferral Form. Each Deferral Form shall specify the date on which payment of the deferred amount (and earnings thereon) is to commence. Such payment date shall be at least four (4) years after the Plan Year in which the deferrals are being made. Each Deferral Form shall also specify the form for payment of the deferred amount (and earnings thereon). A Participant may elect payment in the form of a single lump sum payment or annual installment payments for a period of not less than two (2) but no more than fifteen (15) years. Annual installment payments will be paid once a year beginning on the date specified on the applicable Deferral Form or as otherwise provided herein.
(i) Default Elections. If a Participant fails to specify the date on which payment of the deferred amount (and earnings thereon) is to commence, then Participant will be deemed to have elected distribution at Participants Termination Date, subject to Sections 4.2 or 4.3 below. If a Participant fails to make an effective payment form designation on a Deferral Form, the amount deferred under such Deferral Form (and earnings thereon) will be distributed in a single lump sum in the year elected, subject to Sections 4.1(c), 4.1(d), 4.2 or 4.3 below.
(b) Payment generally shall be made by the end of January in the year that Participant elects a distribution, subject to Sections 4.1(c), 4.1(d) and 4.3 below.
(c) A Participant may also elect on a Deferral Form that payments for that Plan Years deferrals shall commence as soon as practicable following the date on which the Participant Terminates Employment (in the case of installment payments, the first installment shall be paid as soon as administratively practicable after the Termination Date subject to Section 4.2(a), and subsequent installments shall be made in the January following the date of such Termination of Employment), if Participants Termination Date is after his Retirement Date.
(d) If Participants Termination Date precedes his Retirement Date, a Participant shall be deemed to have elected on each Deferral Form that such Plan Years deferrals shall be paid in a single lump sum as soon as practicable following the date on which the Participant Terminates Employment, subject to Section 4.2 below.
4.2. Automatic Distributions. Notwithstanding any payment elections made on Deferral Forms:
(a) Distribution to Key Employees. Distributions may not commence to a Key Employee upon a Termination of Employment before the date which is six months after the date of the Key Employees Termination of Employment.
(b) Distributions Upon Death. Notwithstanding paragraph (b) above, if a Participant dies before full distribution of his Account balance, any remaining balance shall be distributed in a lump sum payment as soon as practicable after the Participants death to the Participants Beneficiary.
4.3. Withdrawals for Unforeseeable Emergency. A Participant may withdraw all or any portion of his Account balance for an Unforeseeable Emergency. The amounts distributed with respect to an Unforeseeable Emergency may not exceed the amounts necessary to satisfy such Unforeseeable Emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participants assets (to the extent the liquidation of such assets would not itself cause severe financial hardship). Unforeseeable Emergency means for this purpose a severe financial hardship to a Participant resulting from an illness or accident of the Participant, the Participants spouse, or a dependent (as defined in Code section 152(a)) of the Participant, loss of the Participants property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.
Notwithstanding Section 3.1, if the Committee approves a distribution under this Section, the Participants deferrals under the Plan shall cease. The Participant will be allowed to enroll if eligible at the beginning of the next enrollment period following six (6) months after the date of distribution.
4.4 Effect of Taxation. If the Internal Revenue Service or a court of competent jurisdiction determines that Plan benefits are includible for federal income tax purposes in the gross income of a Participant prior to actual receipt of the benefits, the Company may immediately distribute the benefits found to be so includible to the Participant, to the extent permitted under Code section 409A.