METROMONT CORPORATION 2011 Retirement Plan Summary WELCOME!
Who Can Participate? Completed 6 months of service as a Metromont Corporation employee
When May I Join? January 1st April 1st July 1st October 1st
How Do I Contribute? Payroll deduction, from 1% to 100% Pre-tax (Traditional 401k) Post-tax (Roth 401k) IRS Maximum $16,500 for 2011 (combined total) Additional $5,500 Catch Up If Over 50 Rollover from prior employer
Traditional 401k verses Roth 401k Contribution amounts You can contribute 1-100% of your pay to each account Annual contribution totals cannot exceed IRS limits Payroll deduction Traditional: pre-tax deduction based off gross income Roth: post-tax deduction based off taxable income Distributions You can take loans, hardship withdrawal or in-service withdrawals on the combined total of both accounts You pay taxes: Traditional-on the total withdrawal (loans only if you don’t repay) Roth-on the investment earnings if you don’t meet certain criteria
Roth 401k – Distributions Your contributions to the Roth 401k are payable to you tax free (because you paid taxes when deducted from your paycheck) Distribution on investment earnings are tax free only if: Your first contribution to the Roth 401k has been in the plan for a minimum of 5 years AND You are at least age 59.5 years, become disabled or die
Can I Stop Or Change My Contributions? May stop contributions anytime May change contribution amount weekly
How Does Metromont Contribute To The Plan? Match 100% on first 3% you contribute Match 50% on the next 2% you contribute Maximum match is 4% when you contribute at least 5% from your pay
How Do I Become “Vested” In My Plan Account? Always fully vested in your own contributions Employer match money goes to your account every week Once eligible (after 6 months) you are 100% vested in employer match So don’t turn away FREE MONEY!!!!
When Can Money Be Withdrawn From My Account? Attaining Age 59 1/2 Death Disability Termination of Employment
Other Withdrawal Features Financial Hardship Loan Program
Financial Hardship You may be allowed to withdraw money from your account if you meet certain requirements for the following reasons: Purchase of your primary residence Tuition for you, your spouse, or your children’ s college education Certain medical expenses for you, your spouse or dependent…previously incurred or to obtain care Prevent eviction from or foreclosure on your home
Financial Hardship Certain conditions apply: Distribution cannot be in excess of the amount of your immediate financial need Proper back for financial need is required for approval All distributions and loans that you are eligible for under the plan have already been obtained Salary deferrals to the plan will be suspended for six months
Loan Program All Participants who have a vested account balance may apply for a loan against their account balance. Certain conditions apply: Loans may be for no more than one half of your vested account balance to a max of $50,000 Minimum loan amount of $1,000 Maximum term of repayment is five years unless mortgage loan A $50 loan establishment fee and $10 quarterly maintenance fee will be deducted from your account balance Can only have 1 loan at a time!
How Do I Obtain Information About My Plan Account? Quarterly Statement www.schwabplan.com 1-800-SCH-PLAN (1-800-724-7526) Newly eligible participants have an automated Personal Identification Number of your 4 digit birthdate “mmdd”-you may change at any time.
How Do I Sign Up? Complete Enrollment Form Enter Beneficiary Data: Everyone must complete a beneficiary form Enter Deferral Percentage on enrollment form You are still required to enroll directly with Schwab (via Hotline or website) in order to activate you contributions from payroll
If I Decline To Participate If you choose not to participate, the Enrollment Form must indicate 0% will be contributed and the form signed and dated. You may choose to sign up at any point If rehired, you are typically eligible to participate immediately upon your rehire date (with less than 5 year break in service)
Rollover of other 401K If you wish to rollover an existing 401K or other qualified pension plan, you may do so at time of hire or at any time Rollovers are initiated & completed by contacting Charles Schwab directly
Questions?????
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