Diocese 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?
Your employer may make a discretionary Matching contribution based on
your deferral contributions. If contributed, you will receive an allocation if you
work at least 1000 hours in the plan year (8/1 - 7/31) and are employed on the
last day of the plan year.
Lay Employees: If your employer contributes a Matching Contribution to the
Plan with respect to Participants who are Lay Employees, the Employer shall
contribute a Matching Contribution equal to (a) 100% of the Participant's
Deferral Contributions up to the first 4% of Compensation for the Plan Year,
plus (b) 50% of the Participant's Deferral Contributions in excess of 4% of
Compensation up to to a maximum of 5% of the Participant's compensation
for the Plan Year.
Priests: If an Employer contributes a Matching Contribution to the Plan with
respect to Participants who are Priests, the Employer shall contribute a
Matching Contribution equal to 100% of the Participant's Deferral
Contributions to the Plan up to a maximum of $1,800.00.
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 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
Percent Vested
Less than 3
0%
3
50%
4
75%
5
100%
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