Collins Mfg Enrollment - Web Book - Revised - 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.
PLAN HIGHLIGHTS
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.
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 Collins Manufacturing, Inc. 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. You
must complete at least 1,000 hours of service during the Applicable Period and
be employed by the Employer on the last day of the Applicable Period in order
to receive an Employer Matching Contribution. For purposes of this section,
the Applicable Period for determining satisfaction of service requirements for
an allocation of Employer Matching Contributions will be each 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 employer contributions, plus the earnings on those
contributions, will be vested based on your years of service according to the
following schedule.
Employer Matching Contributions:
Years of Service
1
2
3
4
Percent Vested
0%
20%
40%
60%
5
80%
6
100%
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