Peninsula 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.
Will Peninsula Trucking, Inc. contribute to my account?
PLAN HIGHLIGHTS
Your employer may, at their discretion, make a Matching Contribution. This
will be determined on an annual basis.
Your employer may also, at their discretion, make a Profit Sharing
Contribution. This will be determined on an annual basis. If a contribution is
made, you must complete at least 500 hours of service during the applicable
Plan Year or be employed on the last day of the applicable Plan Year in order
to receive a contribution.
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.
The Match and Profit Sharing 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
2
3
4
5
6
Percent Vested
0%
20%
40%
60%
80%
100%
Profit-Sharing Contributions:
Years of Service
1
2
3
4
5
Percent Vested
0%
20%
40%
60%
80%
6
100%
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