401(k) Savings Plan

ELIGIBILITY

Full-time employees who are at least 21 years of age are immediately eligible to participate in the 401(k) plan.

Part-time employees who are at least 21 years of age and have worked 1,000 hours or more in the previous 12-month period are also eligible to participate in the plan.

EMPLOYEE CONTRIBUTIONS

The maximum employee deferral amount for 2022 is $20,500 with a catch-up contribution maximum of $6,500. If you are 50 or older, you may contribute a maximum of $27,000 for 2022.

Employees can contribute up to 60% of their eligible compensation through either pretax or ROTH contributions, up to the IRS limits. All funds contributed by the employee and Sample Company are 100% vested.

EMPLOYER CONTRIBUTIONS

Through the 401(k) Company Matching contribution program, you have an opportunity to receive dollar for dollar of what you contribute to the 401(k) Plan up to 5% of your eligible pay.

  • Contributions of up to 5% receive 100% of your contributions up to the maximum Employer Contribution (match) 
  • Maximum Employer Contribution is 5% of eligible compensation up to the IRS limit of $290,000

Additional benefits to participating in your 401(k) Plan include: pretax contributions, to lower your taxable income, investment options, saving convenience and personal and home loan options.

AUTO ENROLLMENT

All new hires will be automatically enrolled into the Plan at a 5% pretax contribution rate after 30 days of employment. Employees are immediately eligible to participate. If no elections are made within this period, these employees will be auto-enrolled at 5%. These elections can be decreased or increased at any time by the employee.

In addition, auto-enrolled participants will be able to direct contributions to any of the investments available in the Plan. However, if you do not make an investment election, your money will be invested in the default fund for the Plan, the American Centuries target date fund (based on age and estimated retirement age of 65).

AUTO INCREASE

The plan also provides the opportunity to elect automatic rate increases to help you reach your goals. Also, if you have been auto-enrolled into the plan, Sample Company will increase your contribution by 1% each year until you reached 10%. You may change this amount or opt-out at any time. 

OPTING OUT OF AUTO ENROLLMENT

If you want to contribute a different amount or do not want to contribute to the Plan, you will have 30 days from your hire date to opt out using one of the below two ways:

  • By phone: Contact Empower Retirement at 800-555-5555, then enter 0# to speak with an Empower representative. You cannot opt out using the automated telephone system. Representatives are available to take your call weekdays between 8 a.m. and 10 p.m. Eastern time and Saturdays between 9 a.m. and 5:30 p.m. Eastern time.
  • Online: Log on to example.com using your username and password
    • Click on the Sample Company 401(k) Savings Plan link.
    • Choose “Paycheck Contributions” under the Account Information menu
    • Choose the amount (whole percentages) that you would like to contribute (enter 0% if you do not wish to contribute)