Page 17 - AAG Benefits Guide OOS (Non-CA) Employees

2021 16

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 Vesting

// Defer up to $19,500* of your pay in 2021 You are always 100% vested in your
on a pre-tax basis (or post-tax Roth) through contributions as well as any amounts
convenient payroll deductions. If you are age you roll over to the plan. Your employer
50 or older you are eligible to contribute an match however, is vested according to
additional $6,500 for 2021 as a “catch up” the schedule below.
contribution.
// Reduce the amount of your current taxable SCHEDULE
income by the amount you contribute on Year 2 25%
a pre-tax basis. You don’t pay federal, and Year 3 50%
in most cases, state income taxes on any Year 4 75%
investment earnings as long as they remain
in the plan. 5 Years or More 100%
// 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.

YEAR VESTING EMPLOYEE AAG TOTAL VESTED
CONTRIBUTIONS CONTRIBUTIONS 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