What is a 401(k) plan?
401(k) refers to a section of the IRS Code that allows you to save part of your compensation on a Traditional PRE-TAX Basis. This lowers your current taxable income and helps your long-term saving grow faster. You may also choose to save part of your compensation on an AFTER-TAX Roth Basis. Roth contributions are taxed before they are contributed to the Plan. This allows tax-free growth and distribution contributions and the earnings on those contributions (assuming the contributions have been invested for at least five years and you have reached age 59 1/2).
You can switch between investment alternatives as often as permitted under the chosen investment.
You always own 100% of the contributions you make to the 401(k) and their earnings. Company contributions, if any, are based upon your years of service and vest at the following rate: less than two years: 0%, after two years: 100%.
Employees can contribute on a pre-tax basis between 1% – 100% of income to a maximum of $20,500 in the 2022 calendar year (adjusted annually). If you are 50 by the end of the 2022 calendar year, you may make additional pre-tax contributions up to $6,500 (adjusted annually).
The company’s 401(k) plan elects to make a profit-sharing contribution at the discretion of Henriksen Butler. Henriksen Butler’s Profit Sharing contributions are announced annually in February.
You may change the amount of your contribution whenever you like by logging into Empower directly.
Contributions to the Plan are held in a trust account. The plan trustees regularly review the investment options offered. You can: 1) build a customized investment portfolio, 2) select an investment option based on your investment style, or 3) select an investment option designed by experts based on your age and projected retirement date.
You are eligible to enroll in the Plan if you are 18 or older and have completed two months of service. You will be auto-enrolled with a contribution match of 5% of your gross compensation on a pre-taxed basis. The first time you go in, you will need to establish your account by visiting empower-retirement.com or calling 800-338-4015 for assistance.
You can also contact Henriksen Butler’s Human Resources team with any questions.