Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 134

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 134
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—Federal Income Tax
Considerations for Holders of Our Capital Stock and Debt Securities—Taxation of Holders of Our Debt Securities—Non-U.S. Holders—Payments
of Interest”) unless:

| · | the gain is                                                                                                                         
 effectively connected with the Non-U.S. Holder’s conduct of a trade or business within the United States (and, if required          
 by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the United States to which such gain 
 is attributable); or                                                                                                                |

| · | the Non-U.S.                                                                                                                          
 Holder is a nonresident alien individual present in the United States for 183 days or more during the taxable year of the disposition 
 and certain other requirements are met.                                                                                               |

Gain described in the first
bullet point above generally will be subject to U.S. federal income tax on a net income basis at the regular rates. A Non-U.S. Holder
that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income
tax treaty) on such effectively connected gain, as adjusted for certain items.

A Non-U.S. Holder described
in the second bullet point above will be subject to U.S. federal income tax at a rate of 30% (or such lower rate specified by an applicable
income tax treaty) on gain realized upon the sale or other taxable disposition of a debt security, which may be offset by U.S. source
capital losses of the Non-U.S. Holder (even though the individual is not considered a resident of the United States), provided the Non-U.S.
Holder has timely filed U.S. federal income tax returns with respect to such losses.

Non-U.S. Holders should consult
their tax advisors regarding any applicable income tax treaties that may provide for different rules.

Information Reporting and Backup Withholding

U.S. Holders

A U.S. Holder may be subject
to information reporting and backup withholding when such holder receives payments on our capital stock or debt securities or proceeds
from the sale or other taxable disposition of our capital stock or debt securities (including a redemption or retirement of a debt security).
Certain U.S. Holders are exempt from backup withholding, including corporations and certain tax-exempt organizations. A U.S. Holder will
be subject to backup withholding if such holder is not otherwise exempt and:

| · | the holder                                                                                                                     
 fails to furnish the holder’s taxpayer identification number, which for