Certified Financial Enrollment - Web Book - Ready - Flipbook - Page 4
CONTRIBUTIONS
How much can I contribute to the Plan?
You may contribute between 1 percent and 100 percent of your before-tax pay
in increments of 1 percent. This amount may not exceed the maximum
allowed by the IRS ($22,500 in 2023).
If you are 50 years or older, you can also make “catch-up” contributions of up
to $7,500 in 2023.
Your Plan contributions will be automatically deducted from your pay. Pretax
salary deferrals are deducted from your pay before taxes are taken out. This
process of investing on a pretax basis helps you save for the future while
reducing the taxes you pay now.
PLAN HIGHLIGHTS
You also may contribute between 1% and 100% of your pay in after-tax dollars
to a Roth account, which can help you accumulate a nest egg for tax-free
income in retirement. Note that total contributions to both Roth and pretax
retirement savings accounts cannot exceed the annual limits set by the IRS (in
2023, $22,500 for standard contributions and $7,500 for catchup contributions).
Will Certified Financial Group contribute to my account?
The Employer may, in its sole discretion, make an Employer Matching
Contribution on your behalf in an amount determined by the Employer
What else should I know about contributions?
Ownership of your Plan account is called vesting. You are always 100% vested
in both your contributions and the earnings on those contributions. This
money is yours.
Your employer's contributions, plus the earnings on those contributions, are
vested based on your years of service according to the following schedule.
Discretionary Matching Contributions:
Years of Service
1
Percent Vested
0%
2
3
4
5
6
20%
40%
60%
80%
100%
Profit-Sharing Contributions:
Years of Service
1
2
Percent Vested
0%
20%
3
4
5
40%
60%
80%
6
100%
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