Financial Performance - SMG - Higher Art of Facility Management设施管理财务绩效的SMG高等艺术.ppt

401(k) Building a Retirement Fund Through 401(k) Contributions What is a 401(k) plan? Eligibility The employee Has to complete one year of service Has to have worked at least 1,000 hours in that 12-month period Must be at least 21 years old Not eligible to participate in the plan, are: Some employees covered by a collective bargaining agreements, depending on the contract, laws or other variables. A leased employee is not eligible. Enrollment Dates Once qualified, the employee becomes eligible to participate on the next quarterly enrollment date. Enrollment Dates: January 1 April 1 July 1 October 1 Vesting “Vesting” means the portion of the employees account balance that he/she is entitled to under the 401(k) plans rules. Vesting “Vesting” = the portion of the account balance to which the employee is entitled. = 100% Vested are: Any of your money contributed into the account is always 100% or fully vested. All employee rollovers into the 401(k) account are 100% vested. Any interest earned on 1 or 2 above are 100% vested. Vesting Company contributions to your 401(k) account are vested according to the following schedule: less the one year = 0% vested one (1) year of service = 33.33% vested two (2) years of service = 66.66% vested three (3) years of service = 100% vested After 3 years of service, an employee is entitled to 100% of the company matching and profit sharing funds in the 401(k) account. Advantages of the 401(k) Advantages of a 401(k) plan Convenient Tax Advantages Get “Company Match” Money Flexible Investment Options Your employer deducts the money from your paycheck. Money is deducted before income taxes are calculated. Company matches part of your contribution. You select from the Company plan’s investment options. Select from a range of funds from conservative to aggressive. Advantage #1: Convenience You decide how much to contribute, up to the IRS annual limit ($13,000 in 2004.) Your contribution is taken