You may make Pretax, Roth and After-tax contributions to your plan. You may contribute up to $18,500, plus and an extra $6000 if you over age 50, Pretax and/or Roth. Your account may not receive more than $55,000, plus an extra $6,000 if you’re over age 50, total/max (including pretax, roth, after-tax and employer contributions) for 2018. Participant contributions are always 100% vested.
Safe Harbor Contribution
Your employer matches your 1st 3% dollar for dollar and your next 2% at 50%. Effectively, if you put in 5%, you get a 4% match. This money is always 100% vested.
Your employer also matches the next 10% of your contributions at 0.25%. Effectively, if you put in 15% then you get the 4% Safe Harbor Match plus an additional 2.5%. You are leaving additional compensation “on the table” if you are contributing less than 15%. This money vests 20%/year of service so that after 5 years you are 100% vested.
This is an optional amount of profit sharing that your employer may make if the business is profitable and the company decides to make additional contributions to your account. The amount you receive is based off of your years of service, salary, age, and job classification. This contribution source is not guaranteed every year and is made at the discretion of management. The money also vests 20%/year of service.
Participant loans are not authorized under your plan and there are no exceptions to this rule.
Participant Hardship Withdrawals
Participant hardship withdrawals are not authorized under your plan and there are no exceptions to this rule.
Rollover and Transfers
Rollovers and transfers into the plan are allowed at any time. Rollovers and transfers out of the plan are only allowed after you reach the age of 59.5 or are separated from employment.
Withdrawals are only permitted after you have separated from service or attained the age of 59.5.
Participant Fee Example:
1 – 0.7% rF + 0.1% TPA + 0.04% Custodian = 0.84%
2 – Avg fund management fee = 0.5%
3 – Total ~1.34%/yr.
If your account balance was $30,000 then you are paying approximately $402/yr. for your 401k retirement account/services.