Page 24 - 2020AONBenefitGuide
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401(k)
Employee Contributions
Employees may contribute up to $19,500 pre-tax and/or Roth after tax dollars
(per IRS regulations). If you are 50 or older, the IRS allows you to contribute
even more pre-tax dollars to your retirement account to help offset smaller
contributions from earlier in your working years. If you qualify for these
“catch-up” contributions, you can contribute an additional $6,500 to the
401(k). How do you qualify? Simply by being 50 or over. You do not have to
be “behind” in your retirement saving goals or below a certain threshold.
401(k) Savings and Retirement Planning
American Oncology Network’s 401(k) proit sharing plan provides an
excellent opportunity for employees to enhance their long term inancial
well-being and plan for their retirement. The 401(k) program is administered
through Principal. More details on Roth and vesting for discretionary proit
sharing will be coming soon.
Employees are eligible on the irst day of the quarter (January, April, July, or
October) after completion of one year of employment and if they are age 18
or older.
American Oncology Network provides a match of 100% on the irst 3%
of employee contributions and a 50% match on the next 2% of employee
contributions. Employees are 100% vested in their contributions and 100%
vested in the company match. Any proit-sharing contributions apply to a cliff
vesting schedule with less than 3 years 0%, and 3 years 100%.
Example
John’s annual compensation is $45,000/$1,730 per pay period. He contributes
5% each pay period into the 401(k) plan. John’s contribution and the
American Oncology Network match is calculated as follows.
John American Oncology
Network
$1,730 × 3% $51.90 $51.90
$1,730 × 2% $34.60 $17.30
Totals $86.50 $69.20
Total per pay period contribution and match = $155.70
24 2020 Benefits Guide
Employee Contributions
Employees may contribute up to $19,500 pre-tax and/or Roth after tax dollars
(per IRS regulations). If you are 50 or older, the IRS allows you to contribute
even more pre-tax dollars to your retirement account to help offset smaller
contributions from earlier in your working years. If you qualify for these
“catch-up” contributions, you can contribute an additional $6,500 to the
401(k). How do you qualify? Simply by being 50 or over. You do not have to
be “behind” in your retirement saving goals or below a certain threshold.
401(k) Savings and Retirement Planning
American Oncology Network’s 401(k) proit sharing plan provides an
excellent opportunity for employees to enhance their long term inancial
well-being and plan for their retirement. The 401(k) program is administered
through Principal. More details on Roth and vesting for discretionary proit
sharing will be coming soon.
Employees are eligible on the irst day of the quarter (January, April, July, or
October) after completion of one year of employment and if they are age 18
or older.
American Oncology Network provides a match of 100% on the irst 3%
of employee contributions and a 50% match on the next 2% of employee
contributions. Employees are 100% vested in their contributions and 100%
vested in the company match. Any proit-sharing contributions apply to a cliff
vesting schedule with less than 3 years 0%, and 3 years 100%.
Example
John’s annual compensation is $45,000/$1,730 per pay period. He contributes
5% each pay period into the 401(k) plan. John’s contribution and the
American Oncology Network match is calculated as follows.
John American Oncology
Network
$1,730 × 3% $51.90 $51.90
$1,730 × 2% $34.60 $17.30
Totals $86.50 $69.20
Total per pay period contribution and match = $155.70
24 2020 Benefits Guide
