City Beverages 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
Will my Employer contribute to my account?
City Beverages, LLC may make a Profit Sharing contribution on a
discretionary basis. You will share in the contribution if you have worked at
least 501 hours or are employed on the last day of the Plan year.
Your employer may make a discretionary Matching contribution based on
your deferral contributions. If contributed, you will receive an allocation
regardless of the number of hours worked during the year or employment
status at the end of the Plan year.
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.
If contributed, your Matching and profit sharing contributions, plus the
earnings on those contributions, are vested based on your years of service
according to the following schedule.
Matching Contributions:
Years of Service
1
2
3
4
5
6
Percent Vested
0%
20%
40%
60%
80%
100%
Profit Sharing Contributions:
Years of Service
1
2
3
4
5
6
Percent Vested
0%
20%
40%
60%
80%
100%
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