Page 26 - American Advisors Group Benefit Guide 2_NonCA

EMPLOYEE BENEFITS 26

401(K) SAVINGS PLAN

Building a healthy financial future is just as important as taking care of your health needs today. Putting money aside for your future is easy
with the 401(k) Plan. Employees are eligible to enroll in the 401k after 60 days of continuous employment with quarterly entry into the plan.

Plan Features
» Defer up to $18,500* of your pay in 2020 on a pre-tax basis (or post-tax Roth) through convenient payroll deductions. If you are age 50 or
older you are eligible to contribute an additional $6,500 for 2020 as a “catch up” contribution.
» Reduce the amount of your current taxable income by the amount you contribute on a pre-tax basis. You don’t pay federal, and in most
cases, state income taxes on any investment earnings as long as they remain in the plan.
» Choose how to invest your contributions through the plan’s multiple investment options.
» AAG offers a discretionary match of 50% on the first 6% of your salary deferrals.

Vesting
You are always 100% vested in your contributions as well as any amounts you roll over to the plan. Your employer match however, is vested
according to the schedule below.
SCHEDULE
Year 2 25%
Year 3 50%
Year 4 75%
5 Years or More 100%

VESTING EMPLOYEE CONTRIBUTIONS AAG CONTRIBUTIONS TOTAL VESTED VALUE
Year 1 0% $3,000 $1,500 $3,000
Year 2 25% $6,000 $3,000 $6,750
Year 3 50% $9,000 $4,500 $11,250
Year 4 75% $12,000 $6,000 $16,500
Year 5 100% $15,000 $7,500 $22,500
*Amount could increase without notice and will be communicated separately.