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 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. If you are already contributing to the 401(k) plan, now may be a good time to increase your contributions. The MarketStar retirement plan is available through Empower Retirement.
(855) 756-4738 | participant.empower-retirement.com
MarketStar Retirement Plan
Retirement Plan
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 5 years and you have reached age 59 1/2).
Eligibility
You are eligible to enroll in the plan on the first of the month after date of hire and 18 years of age or older. Additionally, you may not be:
- covered by a collective bargaining agreement;
- a non-resident alien who does not receive any US source earned income from your employer;
Once you satisfy these requirements, you will be eligible to become a participant on the first day of the following month.
Employee Contributions
Through automatic payroll deduction, you may contribute between 1% and 100% of your eligible pay up to the annual IRS dollar 2022 limit of a maximum of $20,500 in the 2022 calendar year (adjusted annually). The minimum employee pre-tax contribution is 1% of your salary.
Company Contributions
MarketStar makes a discretionary matching contribution to your account. Currently, that amount is 100% for the first 3% and 50% for the next 2%. This match can be changed at any time. You must be making contributions to your account to be eligible for the match.
Catch-up Contributions
If you are 50 by the end of the 2022 calendar year, you may make additional pre-tax contributions (known as catch-up contributions) up to $6,500.
Rollover Contributions
You may be permitted to roll over eligible contributions into this plan from a previous employer’s retirement plan.
Vesting
Vesting refers to the portion of your account balance that you are entitled to under the plan’s rules. You are always 100% vested in your employer and employee deferral account(s), rollover account, and any earnings thereon.
Enroll or Make Changes
You can enroll or make changes to your contributions at any time during the year by either calling Empower directly at (855) 756-4738 or log in to participant.empower-retirement.com and click the Register box and follow the instructions to set up your account.
Withdrawal
You may withdraw money from your 401(k) for any reason after you have reached age 59 1/2. Withdrawals are allowed at any time for hardship reasons (noted explicitly in the plan summary). You may be subject to a fee if you withdraw before age 59 1/2. Your benefits will be taxed upon withdrawal.
