RLF Enrollment - Web Book - Ready - Flipbook - Page 4
CONTRIBUTIONS
How much can I contribute to the Plan?
You may contribute between 1 percent and 100 percent of your before-tax pay
in increments of 1 percent. This amount may not exceed the maximum
allowed by the IRS ($22,500 in 2023). If you are 50 years or older, you can also
make “catch-up” contributions of up to $7,500 in 2023.
Your Plan contributions will be automatically deducted from your pay. Pretax
salary deferrals are deducted from your pay before taxes are taken out. This
process of investing on a pretax basis helps you save for the future while
reducing the taxes you pay now.
PLAN HIGHLIGHTS
You also may contribute between 1% and 100% of your pay in after-tax dollars
to a Roth account, which can help you accumulate a nest egg for tax-free
income in retirement. Note that total contributions to both Roth and pretax
retirement savings accounts cannot exceed the annual limits set by the IRS (in
2023, $22,500 for standard contributions and $7,500 for catchup contributions).
Will Rogers, Lovelock & Fritz, Inc. contribute to my account?
Your Employer will make a Safe Harbor Match Contribution equal to 100% of
your deferrals up to 4% of compensation, plus 50% of deferrals on the next 2%
of compensation.
Your Employer may also make a Profit Sharing Contribution on a discretionary
basis. When contributed, you must complete at least 1000 hours of service
during the applicable Plan Year and be employed on the last day of the
applicable Plan Year in order to receive this contribution.
What else should I know about contributions?
Ownership of your Plan account is called vesting. You are always 100% vested
in both your contributions and the earnings on those contributions. This
money is yours.
You are also always 100% vested in the Safe Harbor Match contributions and
the earnings on those contributions.
If contributed, your Profit Sharing contributions, plus the earnings on those
contributions, are vested based on your years of service according to the
following schedule.
Profit-Sharing Contributions:
Years of Service
1
2
3
4
5
6
Percent Vested
0%
20%
40%
60%
80%
100%
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