Page 29 - IPsoft 2018 Benefits Guide

401(k) Retirement Benefits
Administered by Vanguard
There are many components to a nancially secure retirement, and employees are encouraged to consult with their nancial advisor to develop a comprehensive plan that will t their individual needs. IPSoft offers employees a savings and investment 401(k) plan through Vanguard.
You are eligible to make contributions on the 1st day of the month following 3 months of service and you will be automatically enrolled at 3% and investments defaulted into an age appropriate target date fund.
New hires will have a 30 day “opt-out period” to make changes to the percentage they wish to contribute and the funds they wish to invest in. If no action is taken, contributions will remain at 3% with Vanguard’s designated fund until a change is made.
If you are age 50 or over by the end of the calendar year and reached the annual Plan’s maximum contribution limit for the year, you may elect additional salary deferral, pre-tax contributions, to the Plan, up
to the IRS Catch Up Provision limit which is $6,000 for 2018.
Company Match: IPsoft matches your savings, with 100% of the rst 6% you save. Here’s how it works:
Other features of the 401(k)
⸋ Contribution changes need to be made by the 15th of the month.
⸋ Employees may contact Vanguard Retirement Services at 800-523-1188 Monday through Friday, 8:30 a.m. to 9:00 p.m. EST.
401(k) Plan IRS Contribution Limits for 2018
⸋ $18,500 – if you are age 49 or under.
⸋ $24,500 – if you are age 50 or older (You qualify for this amount if you attain age 50 anytime in 2018).
FINANCIAL
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If you make $30,000 and contribute 6% of your salary each year:
You contribute $1,800 and IPsoft matches your contribution, adding another $1,800.
You become 100% vested on your effective date of eligibility.