401K RETIREMENT BENEFIT
TradeGlobal offers one of the most valuable benefits available today – a defined contribution retirements savings plan. Why is this so important? Because today’s retirees are living longer than ever before – well into their 70s, 80s, 90s and even 100s – and are pursuing diverse and active lifestyles. Retirement is no longer viewed as a time of rest after years of hard work, but the beginning of a brand new stage of life, complete with new adventures. Eligibility To be eligible for the TG Retirement plan, you must meet the following eligibility requirements, which may differ from the requirements of other benefits: • Participants must be 21 years old or older • Participants must have completed three continuous months of service Enrollment Periods Upon meeting eligibility requirements, new participants may enter the plan on the first day of the quarter; January 1, April 1, July 1 or October 1 or any time after that date. Traditional Contributions - Through payroll deduction, employees can make pre-tax contributions from eligible compensation. Because contributions are made pre-tax, traditional plan distributions are taxable. The annual contribution limit for 2016/2017 is $18,000. This amount may be adjusted from time to time by the IRS to account for cost of living adjustments. • Roth Contributions - The plan allows you to make after-tax contributions to your retirement plan. Because contributions are made after-tax, roth distributions are not taxed if you meet certain criteria. To qualify for tax-free withdrawals, your money must remain in the account for five years and you must have reached age 59 ½. The IRS dollar limit also applies cumulatively to your employee pre-tax contributions and your Roth contributions. • Catch-Up Contributions - If you are age 50 or older and make the maximum allowable deferrals to the plan, you are entitled to contribute an additional “catch-up contribution”. The catch-up contribution is intended to help eligible employees make up for smaller contributions made earlier in their career. The maximum catch- up contribution limit for 2016/2017 is $6,000. • Employer Contributions - Safe Harbor: TradeGlobal makes safe harbor matching contributions to help you save for retirement by contributing 100% of your pre-tax and roth contributions up to 3% of your compensation, plus 50% of your pre-tax and roth contributions up to an additional 2% of compensation. • Contribution Changes - You may increase or decrease the amount of your deferral as often as daily. You may also stop or restart your contributions as often as desired. Vesting Vesting refers to the “ownership” of a benefit from the plan. Any deferrals that you contribute and the money your deferrals earn are always 100% vested in addition to any rollover and transfer contributions. In the event that TradeGlobal makes discretionary contribution(s) to the plan, those amounts would be subject to a vesting schedule: Contributions •
2 years of service 20% vested 3 years of service 40% vested 4 years of service 60% vested 5 years of service 80% vested 6 years of service 100% vested
Withdrawals Funds from your retirement account may be withdrawn for any of the following: • Qualified retirement • In-Service withdrawals • Financial Hardship • Termination of service/employment • Death • Disability
For additional information contact the TradeGlobal Human Resources
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