Jay Hauke.Draftline Enrollment - Web Book - 2025 - Flipbook - Page 4
CONTRIBUTIONS
How much can I contribute to the Plan?
You may contribute between 1% and 100% of your before-tax pay in
increments of 1 percent. With pre-tax contributions, every dollar you save will
reduce your current taxable income by an equal amount, which means you'll
owe less in income taxes for the year.
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.
Contribution limits for 2025 not to exceed a total of $23,500 if under the age of
50, or $31,000 if age 50 or over. Also available to individuals aged 60, 61, 62, or
63 is The Super Catch-Up. This is NOT in addition to the regular catch-up
contribution. You can use either the regular catch-up limit ($7,500 in 2025) OR
the super catch-up limit ($11,250 in 2025), but not both.
PLAN HIGHLIGHTS
Your Plan contributions will be automatically deducted from your pay and
deposited into your individual account.
Will Jay Hauke Payroll Incorporated contribute to my account?
Your Employer will make Safe Harbor Non-Elective contributions to the plan
in an amount not less than 3% of compensation.
Your employer may also make a profit sharing contribution on a discretionary
basis. In a Plan Year in which your employer decides to make this
contribution, you must be employed on the last day of the applicable plan
year AND you must have completed 1,000 hours of service in said plan year in
order to receive a profit sharing 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. This
money is yours.
You are also always 100% vested in the Safe Harbor Match contributions and
the earnings on those contributions.
If contributed, your Profit Sharing contributions, plus the earnings on those
contributions, are vested based on your years of service according to the
following schedule.
Profit-Sharing Contributions:
Years of Service
1
2
3
4
5
6
Percent Vested
0%
20%
40%
60%
80%
100%
Page 3
