similar to a 401k, tax is paid when it's time to collect. When you leave IBM, you are have the option to collect it as a lump sum or annuity (taxed as income)

similar to a 401k, tax is paid when it's time to collect. When you leave IBM, you are have the option to collect it as a lump sum or annuity (taxed as income) or to roll it into a 401K or IRA