Page 29 - Enrollment Guide
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Custom Model Portfolios
How your savings are invested will determine how that money grows.
If you do not make an investment selection, your contributions will be
invested into a Moderate retirement date-based strategy based on your
date of birth and a projected retirement age of 65. The money in your
account will automatically be reallocated among the investment options
within this strategy on a periodic basis. You can change this option
anytime you wish.
Roth 401(k)
Salary Deferrals
You may choose to make contributions to your 401(k) plan on a pre-tax
or after-tax basis. If you choose to make pre-tax contributions, you will
not pay taxes on these contributions and accumulated earnings until you
make a withdrawal from your 401(k) account. If you choose to utilize the
Roth 401(k) feature available to you, you will make after-tax contributions
to your retirement plan. The government will tax your Roth 401(k)
contributions in the year you make them.
Roth 401(k) Key Points
Contributions are subject to federal income tax, if applicable, state
and local income taxes; you can withdraw savings and investment
earnings tax free if you are age 59½ or older and you have held the
account for at least ive years at the time of distribution
The government applies a 10 percent penalty if you take non-
qualiied distributions before 59½ or if you have held the account for
less than ive years
Participants under age 50 can contribute up to $18,000; participants Disclosure: the information
50 or older can contribute up to $24,000 (that includes the additional presented herein does not
$6,000 “catch-up” contribution) constitute speciic tax or
You may make both pre-tax and after-tax (Roth) contributions to investment advice and may be
affected if regulations change.
your 401(k) plan; the total of your contributions cannot exceed the Please consult your tax or inancial
$18,000/$24,000 annual maximum advisor for information speciic to
You can rollover Roth 401(k) plan account assets directly to a Roth your situation.
IRA with no tax payment
Any matching contributions will be deposited into your account as
traditional pre-tax contributions
Benefit Guide 2016
Custom Model Portfolios
How your savings are invested will determine how that money grows.
If you do not make an investment selection, your contributions will be
invested into a Moderate retirement date-based strategy based on your
date of birth and a projected retirement age of 65. The money in your
account will automatically be reallocated among the investment options
within this strategy on a periodic basis. You can change this option
anytime you wish.
Roth 401(k)
Salary Deferrals
You may choose to make contributions to your 401(k) plan on a pre-tax
or after-tax basis. If you choose to make pre-tax contributions, you will
not pay taxes on these contributions and accumulated earnings until you
make a withdrawal from your 401(k) account. If you choose to utilize the
Roth 401(k) feature available to you, you will make after-tax contributions
to your retirement plan. The government will tax your Roth 401(k)
contributions in the year you make them.
Roth 401(k) Key Points
Contributions are subject to federal income tax, if applicable, state
and local income taxes; you can withdraw savings and investment
earnings tax free if you are age 59½ or older and you have held the
account for at least ive years at the time of distribution
The government applies a 10 percent penalty if you take non-
qualiied distributions before 59½ or if you have held the account for
less than ive years
Participants under age 50 can contribute up to $18,000; participants Disclosure: the information
50 or older can contribute up to $24,000 (that includes the additional presented herein does not
$6,000 “catch-up” contribution) constitute speciic tax or
You may make both pre-tax and after-tax (Roth) contributions to investment advice and may be
affected if regulations change.
your 401(k) plan; the total of your contributions cannot exceed the Please consult your tax or inancial
$18,000/$24,000 annual maximum advisor for information speciic to
You can rollover Roth 401(k) plan account assets directly to a Roth your situation.
IRA with no tax payment
Any matching contributions will be deposited into your account as
traditional pre-tax contributions
Benefit Guide 2016
