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TaxBit / Retirement Plan

What is a 401(k)?How much should I contribute?Is there a maximum amount I can put in?

Plan Options: 401(k) Retirement Plan
A 401(k) is a savings and investing plan that gives you a tax break on the money you set aside for retirement. Contributing to a 401(k) plan may be one of the most important things you can do to prepare for your long-term financial needs. Being on track to meet your financial goals will provide you and your loved ones peace of mind. A 401(k) plan allows you to contribute a portion of your compensation per pay period to prepare for retirement. If you are already contributing to the 401(k) plan, now may be a good time to increase your contributions.

TaxBit 401(k) Plan

Eligibility

Excluded Employees:
You are excluded from the Plan if you are a member of any of the following classes of employees:

  • Employees covered by a collective bargaining agreement, for purposes of Elective Deferral Contributions, Employer Matching Contributions and Non-Elective Contributions.
  • Any leased employee, for purposes of Elective Deferral Contributions, Employer Matching Contributions and Non-Elective Contributions.
  • Non-resident aliens, for purposes of Elective Deferral Contributions, Employer Matching Contributions and Non-Elective Contributions.

Elective Deferral Contributions, Employer Matching Contributions, and Non-Elective Contributions:
You must meet the following criteria to become eligible to participate in the Plan:

  • Attain age 18
  • Complete 3 month(s) of service

Elective Deferral Contributions, Employer Matching Contributions, and Non-Elective Contributions:
You will enter the Plan on the first day of the calendar month coincident with or next following the time you meet the eligibility criteria specified above. Under certain circumstances, you may be automatically enrolled in the Plan. A notice will be provided with details prior to the beginning of each plan year.

Contributions

Elective Deferral:
You may elect to defer up to 92% of your Plan Compensation on a pre-tax basis. You may also elect to make Roth contributions to the Plan on an after-tax basis. You may elect to change your elections to contribute to the Plan as of each pay period. Federal law also limits the amount you may elect to defer under the Plan ($20,500 in 2022). However, if you are age 50 or over, you may defer an additional amount up to $6,500 (in 2022). These dollar limits are indexed; therefore, they may increase each year for cost-of-living adjustments.

Employer Matching Contributions:
The Employer may, in its sole discretion, make an Employer Matching Contribution on your behalf in an amount determined by the Employer. You must complete at least 1,000 hours of service during the Applicable Period and be employed by the Employer on the last day of the Applicable Period in order to receive an Employer Matching Contribution. For purposes of this section, the Applicable Period for determining satisfaction of service requirements for an allocation of Employer Matching Contributions will be each Plan Year.

Non-Elective Contributions:
The Employer may, in its sole discretion, make a Non-Elective Contribution on your behalf in an amount determined by the Employer. Such contribution, if made, will be allocated in an amount designated by the Employer to be allocated to similarly situated eligible Participants.

You must complete at least 1,000 hours of service during the Applicable Period and be employed by the Employer on the last day of the Applicable Period in order to receive a Non-Elective Contribution. For purposes of this section, the Applicable Period for determining satisfaction of service requirements for an allocation of Non-Elective Contributions will be each Plan Year.

Rollovers:
The Plan may accept a Rollover Contribution made on behalf of any Employee not excluded from the Plan, regardless of whether such Employee has met the age and service requirements of the Plan. If you have money in a non-Roth account you may rollover/transfer the account balance to a Roth (after-tax) account under this plan.

Vesting

Fully Vested Accounts:
You will have a fully vested and nonforfeitable interest in your Elective Deferral Account, Rollover Contribution Account and Qualified Non-Elective Contribution Account.

Employer Matching Contribution Account and Non-Elective Contribution Account:
Your interest in your Employer Matching Contribution Account and Non-Elective Contribution Account will vest based on your Years of Vesting Service according to a 2-6 year graded vesting schedule (20% per year starting with two years of vesting service).

Investing Plan Contributions

Investments:
You may direct the investment of all of your Accounts in one or more of the available Investment Funds. The Plan Administrator may also permit the Trustee to establish self-directed brokerage accounts on your behalf. Your elections will be subject to such rules and limitations as the Plan Administrator may prescribe. The Plan Administrator may restrict investment transfers to the extent required to comply with applicable law. The Plan is intended to constitute a plan described in section 404(c) of ERISA. This means that Plan fiduciaries may be relieved of liability for any of your losses that are the result of your investment elections.

Distributions and Loans

Distributions from the Plan:
You may receive a distribution from your account under the following circumstances:

  • Immediately after your employment terminates
  • Normal Retirement Age (even if you are still working)
  • Hardship (limited accounts)
  • After age 59-1/2
  • From the Rollover Contribution Account at any time
  • Death
  • Disability

Loans:
The minimum loan amount is $1,000 and the maximum number of loans outstanding is 2. Please see your Loan Procedures for additional details on taking a loan from the Plan.

Plan Documents & Resources

Participant Notice Packet