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401(k) Plan1 Continued... |
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EMPLOYER CONTRIBUTIONS: The employer will make a Safe harbor matching contribution of 100% for the first 3% of the compensation and 50% of the next 2% of compensation. You will always be 100% vested in your Safe Harbor Accounts. The maximum Matching contribution dollar amount which a Highly Compensated Employee (HCE) can receive for 2008 is $3,000.
The Plan Document also includes a provision to allow for Employer profit-sharing contributions to be made at the Company’s discretion.
VESTING: Your 401(k) Salary Deferral Contributions are always 100% vested. You will always be 100% vested in all accounts maintained on your behalf.
Years of Service for vesting will be credited for each year of service during which you complete at least 1,000 hours of service, measured from your date of hire.
LOANS: You can borrow up to 50% of your vested interest and the minimum amount you can borrow is $1,000. The Maximum loan that can be taken (or outstanding) during any 12 month period is $50,000. The loan must be repaid within 5 years. Each loan will bear a rate of interest to be determined when the loan is made and for a period of five years, the interest amount will be credited to your account. The loan payments will be deducted from your payroll each pay period.
WITHDRAWALS: Distributions from the Plan may only be made upon the occurrence of an event which is specified in the Plan and provides for a payout. Those events include the following:
· Separation of service · Retirement at age 65 (automatic full vesting) · Permanent or total disability · Death
Taxable distributions (i.e. those not directly rolled into an IRA) are subject to a mandatory 20% federal withholding. Amounts received prior to age 59˝ are subject to an additional amount equal to a 10% excise tax. The actual taxes you may owe on a taxable distribution are based on your regular income tax rates (federal and state) for the year of the distribution.
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