Subway Development - 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).
PLAN HIGHLIGHTS
Will Subway Development Co. of Central Florida, Inc. contribute to my
account?
Your Employer will make a Safe Harbor Match contribution equal to at least
100% up to the first 3% of compensation plus 50% of the next 3% of
compensation, not to exceed 6% of compensation.
The Employer may, in its sole discretion, make a Non-Elective Contribution on
your behalf in an amount determined by the Employer. Such contribution, if
made, will be allocated based on the amount of your compensation above and
below the integration level. You will receive a larger allocation based on
compensation above the integration level. Please see the Summary Plan
Description for more information concerning the Non-Elective formula. 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 a Non-Elective Contribution. For purposes of this section, the
Applicable Period for determining satisfaction of service requirements for an
allocation of Non-Elective 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.
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.
Discretionary Matching and Profit-Sharing Contributions:
1
Years of Service
2
3
4
5
6
Percent Vested
0%
20%
40%
60%
80%
100%
Page 3
