Markowitz 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.
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 Markowitz, Ringel, Trusty & Hartog, P.A. contribute to my account?
PLAN HIGHLIGHTS
Your Employer will make a Safe Harbor Non-Elective Contribution equal to at
least 3% of compensation.
Your Employer may also make a matching contribution on a discretionary
basis to be determined by the Employer and you must complete 1,000 hours
to share in the contribution.
Your employer may also make a Profit Sharing contribution on a discretionary
basis. There are no allocation conditions to meet in order to receive an
allocation, if contributed.
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 additional 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
6
Percent Vested
0%
20%
40%
60%
80%
100%
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