How Taxes Affect Your Benefit

Special Rules for Stock Distributions

You should be aware that distributions of S&P Global stock following your termination of employment from the Company may have special tax treatment. If your distribution qualifies as a “lump sum distribution” under the Code, you may elect the following special tax treatment:

• At the time of distribution, you will be taxed only on the “cost basis” you have in the Company stock (this is the amount paid for the stock at the time it was purchased for your Plan Account) and only to the extent it does not exceed the current market value of the stock.
• When you later sell the Company stock, you will receive long term capital gains treatment for the difference between the market value of the stock (at the time of distribution) and the cost basis. Long term capital gains may be taxed at lower tax rates than ordinary income tax rates.
• Any appreciation in the stock after the date of distribution to you will receive either short or long term (held for at least one year) capital gains treatment, depending upon how long you continue to hold the stock after its distribution from a Plan to you.

Normally, any distribution of Company stock while you are still employed will be taxed as ordinary income and will not be eligible for the above special treatment.