Company: RWT-PA
Filing Date: 2025-01-15
Form Type: 424B5
Source: 0001104659-25-003632
Chunk: 133

Company: REDWOOD TRUST INC
Filing Date: 2025-01-15
Form: 424B5
Chunk 133
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 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 an individual is ordinarily his or her social security 
 number;                                                                                                                        |

<div align='center'>50</div>

| · | the holder                                             
 furnishes an incorrect taxpayer identification number; |

| · | the applicable                                                                                                                   
 withholding agent is notified by the IRS that the holder previously failed to properly report payments of interest or dividends; 
 or                                                                                                                               |

| · | the holder                                                                                                                          
 fails to certify under penalties of perjury that the holder has furnished a correct taxpayer identification number and that the IRS 
 has not notified the holder that the holder is subject to backup withholding.                                                       |

Backup withholding is not
an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a U.S.
Holder’s U.S. federal income tax liability, provided the required information is timely furnished to the IRS. U.S. Holders should
consult their tax advisors regarding their qualification for an exemption from backup withholding and the procedures for obtaining such