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401(k)

The 401(k) plan provides a means for you to build savings for the future by giving you the opportunity to:

You are eligible to participate in the plan first day of the month following 30 days of employment. You will receive an information packet with instructions on how to enroll and set up your 401(k) when you become eligible to participate in the plan. You can save up to 90% of your eligible pay on a pretax basis, up to the IRS annual dollar limits. You can also make after-tax contributions to a Roth account, in accordance with plan provisions.

In addition to the annual pretax contribution limits imposed by the IRS ($18,000 in 2016), you will be able to make “catch-up” contributions in the amount of $6,000 per year starting in the year you attain age 50.

Company Matching Contributions

The Company will match $1.00 for each dollar that you contribute up to 4% of your eligible pay calculated on a per pay period basis. Company matching contributions are invested in the same funds as your employee contributions.

You should carefully review your contribution strategy so that you can maximize both the Company matching contributions and your pretax contributions. Your tax advisor can help you in this regard.

Company Match Example

For example, an employee having $1,000 in eligible pay per period and deferring 10% of pay ($100), the 401(k) Company matching contribution would be $40 calculated as follows:

$1,000 eligible pay x 4% of eligible pay = $40 match = $40 Company matching contribution. Although the employee deferred $100, $140 was invested.

Carefully Determine Your 401(k) Contribution Amount

In deciding upon the contribution percentage you wish to make, keep in mind that once you reach the annual contribution limit (as determined by the IRS), the Company match stops. For example, if you are less than age 50 and reach the IRS pretax contribution limit by September, you will receive no Company match for the rest of the year. Therefore, in order to maximize the Company matching amount you receive during the year, you should select a contribution percentage or a flat dollar amount to be deducted per pay period that results in your reaching the IRS contribution limit as close to year-end as possible.

Vesting

You are immediately vested in your own contributions and related investment earnings. The vesting schedule applicable to employer contributions is as follows:

Years of Service
Vested Percentage
2
20%
3
40%
4
60%
5
80%
6+
100%

Investment Options

You can spread your investments among several options to take advantage of what each has to offer and help balance different types of risk. For more complete information about any of the mutual funds available through the plan, including fees and expenses, log on to MykPlan at www.mykplan.com or call 866.695.7526 to speak to a representative.

Loans

You may obtain loans against your vested account balance, subject to certain restrictions and limitations. Any loan made to you is secured by your vested interest.

The total of all outstanding loans cannot exceed the lesser of 50% of your vested account balance or $50,000. The minimum loan amount is $800.

Plan Administration

Administration and recordkeeping services are provided by ADP. ADP can be contacted by calling 866.695.7526 or visiting www.mykplan.com.