Page 18 - Arrowhead Credit Union Benefit Guide 2019 - Final

Fidelity Investment Services | Traditional Pre-tax 401(k)
A 401(k) plan is a retirement plan which gives you the ability to contribute a portion of your current pay into
a trust fund to be paid out at retirement. It provides a way for you to put aside money for retirement through
payroll deductions. You do not pay federal or state income taxes on the money you contribute until a
distribution is made. Based on the amount you defer, the Credit Union also contributes to your 401(k)
account.

Fidelity Investment Services | Roth 401(k)
Unlike a traditional pre-tax 401(k), the Roth 401(k) gives you the ability to contribute after-tax dollars and
then withdraw tax-free dollars from your account when you retire.* Just like with a traditional pretax 401(k),
you elect how much of your salary you wish to contribute. Your contributions to a Roth 401(k) and traditional
pretax 401(k) cannot exceed IRS limits. A Roth 401(k) could be a good option for you if you are: a younger
Team Member who has a longer retirement horizon and more time to accumulate tax-free earnings; a highly
compensated Team Member who isn’t eligible for Roth IRAs, but who wants a pool of tax-free money to
draw on in retirement; or a Team Member who wants to leave tax-free money to heirs.

*In the event of either retirement or termination, your earnings can be withdrawn tax free as long as it has
been five years since your first Roth 401(k) contribution and you are at least 59 ½ years old. In the event of
death, beneficiaries may be able to receive distributions tax free if the deceased started making Roth
contributions more than five years prior to the distribution. In the event of disability, your earnings can be
withdrawn tax free if it has been five years from your first Roth 401(k) contribution.

401(k) IRS Maximums 2018 2019

Elective Deferral $18,500 $19,000
Catch-Up for Employees Age 50+ $6,000 $6,000

Eligible Team Members will be supplied with information regarding this program when they are eligible to
participate. The summary plan description can be viewed by going to UltiPro/Myself/Benefits/Links. Consult
the plan documents for all information regarding eligibility, coverage and benefits. It is the plan document
that ultimately governs your entitlement to benefits.

For More Information
Your investment account will be held at Fidelity Investments Services. Go to www.401k.com or call
(800) 835-5097.

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