nFront Enrollment Web Book 2024 - 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 ($23,000 in 2024). If you are 50 years or older, you can also make
“catch-up” contributions of up to $7,500 in 2024.
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 2024,
$23,000 for standard contributions and $7,500 for catchup contributions).
PLAN HIGHLIGHTS
Will nFront Consulting LLC contribute to my account?
Your Employer will make a Safe Harbor Non-Elective Contribution equal to at
least 3% of compensation.
Your Employer may also, at their own discretion, contribute an additional
match. The total amount of the Matching Contribution will not exceed 4% of
Compensation.
The Employer may also make contributions based on company profitability on a
discretionary basis.
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 Non-elective contributions
and the earnings on those contributions.
If contributed, your Employer Matching and Profit Sharing contributions, plus
the earnings on those contributions, are vested based on your years of service
according to the following schedule.
Employer Matching Contributions:
Years of Service
2
Percent Vested
20%
3
4
5
6
40%
60%
80%
100%
Profit-Sharing Contributions:
3
Years of Service
2
Percent Vested
20%
40%
4
60%
5
80%
6
100%
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