Contributions to the 401(k) are taken directly out of your paycheck before federal income taxes are withheld. Because the contributions are pre-tax, it lowers your total taxable income. And to make saving for your future even brighter, we’ll make an employer matching contribution. Now that’s what we call a wise investment.
Our 401(k) retirement plan is designed to help you prepare for retirement and attain your financial goals. The plan makes it easy for you to save money on a tax-deferred basis. When you enroll in the plan, a personal account will be established with Empower Retirement Services in your name, funded by:
We add to your savings by matching 50% of the first 4% that the contribution you make. There is also a Safe Harbor contribution of 3% and then a possible Profit Sharing contribution at the company discretion.
To enroll in the plan, you must be age 21 or older and have completed at least 1 month of service.
You have the option of enroll in the 401(k) on a monthly basis once you meet the eligibility age and service requirement.
An important aspect of estate planning is making beneficiary designations and keeping them up to date after life changes. It’s generally quick and easy to assign or update your beneficiary designation by visiting the 401(k) website. You will need to provide the name and Social Security number of each beneficiary. If you cannot complete the designation online, you can obtain a paper form.
As soon as you’re eligible to participate in the 401(k) retirement plan, you will be automatically enrolled.
Unless you voluntarily elect to opt out or change your salary deferral percentage, the deferral percentage will begin at 6 percent and increase 1 percent each year, effective each Jan. 1, until your deferral percentage reaches a maximum of 10 percent.
Pretax contributions allow you to reduce your current taxable income. In addition, any earnings on your contributions are also tax-deferred. Any contributions and earnings are fully taxable as ordinary income when you withdraw them.
You make Roth 401(k) contributions with after-tax money, so you see no immediate tax benefit. Any earnings from those contributions are tax-free when you take a qualified distribution.
2023 401(k) plan limits:
Empower Retirement Services
