Page 21 - Puma EE Guide 01-19 - Digital Guide

RETIREMENT SAVINGS

NEWPORT GROUP | 401(K)
You are encouraged to participate in Puma Biotechnology’s 401(k) plan. You will be eligible to participate
in the Plan on the first pay cycle following the completion of 90 days of service. As a Participant under the
Plan, you may elect to reduce your compensation by a specific percentage or dollar amount and have that
amount contributed to the Plan as a salary deferral. There are two types of salary deferrals: Pre-Tax 401(k)
deferrals and Roth 401(k) deferrals. For purposes of this Summary Plan Description (SPD), “salary deferrals”
generally means both Pre-Tax 401(k) deferrals and Roth 401(k) deferrals. Regardless of the type of deferral
you make, the amount you defer is counted as compensation for purposes of Social Security taxes.

Pre-Tax 401(k) deferrals. If you elect to make Pre-Tax 401(k) deferrals, then your taxable income is reduced
by the deferral contributions so you pay less in federal income taxes. Later, when the Plan distributes the
deferrals and earnings, you will pay the taxes on those deferrals and the earnings. Therefore, with a Pre-Tax
401(k) deferral, federal income taxes on the deferral contributions and on the earnings are only postponed.
Eventually, you will have to pay taxes on these amounts.

Roth 401(k) deferrals. If you elect to make Roth 401(k) deferrals, the deferrals are subject to federal income
taxes in the year of deferral. However, the deferrals and, in most cases, the earnings on the deferrals are
not subject to federal income taxes when distributed to you. In order for the earnings to be tax free, you
must meet certain conditions.

Puma will match 100% of the first 3% of your eligible compensation deferral and 50% of the next 2% of
eligible compensation deferral. Therefore, should you defer at least 5% of your total eligible compensation,
Puma will contribute the company maximum of 4% of your eligible compensation. These contributions are
100% vested upon payment by the company.

An example for an employee earning $75,000 per year and contributing 5% of their salary would be:

Employee Annual Salary: $75,000
Employee Deferral: 5%

% EMPLOYEE SAFE HARBOR PUMA MATCHING SCHEDULE
CONTRIBUTION MATCH
3% $2,250 $2,250 Puma matches 100% of the first 3%
1% $750 $375 Puma matches 50% for contributions between 3 and 5%
1% $750 $375 Puma matches 50% for contributions between 3 and 5%
5% $3,750 $3,000
5% 4% Effective Deferral Rate

401(K) IRS MAXIMUMS 2018 2019 2020
Employee Deferral $18,500 $19,000 Indexed for Inflation
Catch-up Deferral for Employees $6,000 $6,000 Indexed for Inflation
Over the Age of 50
Puma Biotechnology’s employer match is immediately vested once your contributions begin.

FOR MORE INFORMATION OR TO ENROLL:
Please visit www.newportgroup.com or call (888) 401-5629.

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