CLIENT NAME HERE Retirement Plan
Qualified Default Investment Notice
Beginning in 2008, if you have not turned in a contribution election form, if deposits are made on your behalf, they will be deposited to a default investment election selected by the Plan's Trustee.
This notice gives you important information about some Plan rules, including the Plan's automatic enrollment feature and Company matching contributions. The notice covers these points:
- Whether the Plan's automatic enrollment feature applies to you;
- What amounts will be automatically taken from your pay and contributed to the Plan;
- What other amounts the Company will contribute to your Plan account;
- How your Plan account will be invested;
- When your Plan account will be vested (that is, not lost when you leave your job), and when you can get your Plan account; and
- How you can change your contributions.
You can find out more about the Plan in another document, the Plan's Summary Plan Description (SPD).
- Does the Plan's automatic enrollment feature apply to me?
The Plan does not currently have an automatic enrollment feature
- If I do nothing, how much will be taken from my pay and contributed to the Plan?
If you do not turn in a completed contribution form, 0% of your eligible pay for each pay period will be taken from your pay and contributed to the Plan
Your contributions to the Plan are taken out of your pay and are not subject to federal income tax at that time. Instead, they are contributed to your Plan account and can grow over time with earnings. Your account will be subject to federal income tax only when withdrawn. This helpful tax rule is a reason to save for retirement through Plan contributions.
Contributions will not be taken out of your pay if you do nothing. But you are in charge of the amount that you contribute. You may decide to do nothing, or you may choose to contribute an amount that better meets your needs. For example, you may want to get the full amount of the Company's matching contributions if there is a match. You can change your contributions by turning in a new contribution form to the Plan Administrator at the address listed at the end of this notice.
If you want to contribute more to your account than would be provided automatically, there are limits on the maximum amount. These limits are described in the Plan's SPD.
- In addition to the contributions taken out of my pay, what amounts will the Company contribute to my Plan account?
The Company may contribute a match. The Company may make a Profit Sharing Contribution.
Remember, you can always change the amount you contribute to the Plan by turning in a new contribution form prior to January 1, 2008.
- How will my Plan account be invested?
The Plan lets you invest your account in a number of different investment funds. Unless you choose a different investment fund or funds, your Plan account will be invested in the [ ] Fund.
You can change how your Plan account is invested, among the Plan's offered investment funds, by turning in the enclosed enrollment Form to the Plan Administrator at the address listed at the end of this notice.
To learn more about the Plan's investment funds and procedures for changing how your Plan account is invested you can review the Plan's SPD. Also, you can contact the Plan Administrator using the contact information at the end of this notice.
- When will my Plan account be vested and available to me?
You will always be fully vested in your contributions to the Plan. You will also be fully vested in matching contributions when you complete six years of service. To be fully vested in Plan contributions means that the contributions (together with any investment gain or loss) will always belong to you, and you will not lose them when you leave your job. For more information about years of service, you can review the Plan's SPD.
Even if you are vested in your Plan account, there are limits on when you may withdraw your funds. These limits may be important to you in deciding how much, if any, to contribute to the Plan. Generally you may only withdraw vested money after you leave your job, reach age 59-1/2, or become disabled. Also, there is generally an extra 10% tax on distributions before age 59-1/2. Your beneficiary can get any vested amount remaining in your account when you die.
You also can borrow certain amounts from your vested Plan account, and may be able to take out certain vested money if you have a hardship. Hardship distributions are limited to the dollar amount of your contributions. They may not be taken from earnings or matching contributions. Hardship distributions must be for a specified reason - for qualifying medical expenses, costs of purchasing your principal residence (or preventing eviction from or foreclosure on your principal residence, or repairing qualifying damages to your principal residence), qualifying post-secondary education expenses, or qualifying burial or funeral expenses. Before you can take a hardship distribution, you must have taken other permitted withdrawals and loans from qualifying Company plans. If you take a hardship distribution, you may not contribute to the Plan or other qualifying Company plans for 6 months.
You can learn more about the Plan's hardship withdrawal and loan rules in the Plan's SPD. You can also learn more about the extra 10% tax in IRS Publication 575, Pension and Annuity Income.
- Can I change the amount of my contributions?
You can always change the amount you contribute to the Plan to zero.
If you have any questions about how the Plan works or your rights and obligations under the Plan, or if you would like a copy of the Plan's SPD or other Plan documents, please contact the Plan Administrator at:
CLIENT ADDRESS
EMAIL
CONTACT INFORMATION
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