Shubin Law Group - Web Book - 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 ($23,000 in 2024). If you are 50 years or older, you can also make
“catch-up” contributions of up to $7,500 in 2024.
PLAN HIGHLIGHTS
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.
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
2024, $23,000 for standard contributions and $7,500 for catchup contributions)
Will my Employer contribute to my account?
Your Employer will make a Safe Harbor Match contribution equal to at least
3% of your compensation, once eligible. Please refer to your Annual Safe
Harbor notice for more details.
Your employer may also make contributions based on company profitability on
a discretionary basis. If contributed, all eligible participants in the plan will
receive a contribution if employed at any time with the applicable Plan Year.
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
Percent Vested
0%
2
25%
3
4
5
50%
75%
100%
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