Savings Highlights & Contribution Limits
Overview
You may contribute to the Plan, up to a specified per hour amount as pre-tax and/or Roth contributions, in accordance to limits set by the Federal tax laws.
Pre-Tax Contributions
You may contribute to the Plan, up to a specified per hour amount as pre-tax and/or Roth contributions, in accordance to limits set by the Federal tax laws.
For Example: In 2021, rates are limited to $12.00 per hour, not to exceed the annual limit of $19,500 if under age 50. If you are over age 50, or will be age 50 by the end of the calendar year, you may be eligible to contribute even more.
For Plan purposes, “pay” consists of your compensation reported on Form W-2, including any amounts deferred under a salary reduction agreement through this Plan and/or a cafeteria (Code Section 125) plan maintained by your Employer.
Excess Contributions
The federal tax laws also limit the amount you can contribute to the Plan as pre-tax and Roth contributions each year. You should also be aware that the annual dollar limit is an aggregate limit that applies to all contributions you may make under this Plan or other cash or deferred arrangements (including other 401(k) plans and 403(b) plans). Generally, if your total pre-tax and Roth contributions under all cash or deferred arrangements for a calendar year exceed the annual dollar limit, the excess must be included in your income for the year of the contribution and, if the excess is not returned to you by the following April 15th, again when it is later distributed to you. For this reason, it is desirable to request the return of any excess contributions.
If you participated in more than one 401(k) plan during the year and exceeded the federal limits for that year, you must decide which plan or arrangement you would like to return the excess. If you decide that the excess should be distributed from this Plan, you must communicate this in writing to the Fund Office no later than the March 1st following the close of the calendar year in which such excess contributions were made. However, if the entire dollar limit is exceeded in this Plan, every effort will be made to return any amounts contributed in excess of the federal limits.
NOTE: Other requirements under the federal tax laws may limit the total amount that may be allocated to your account in any year, or the total pre-tax and Roth contributions which may be made by certain higher-paid Employees. These limits could require you to reduce your contribution percentage or the total you have contributed for the year. You will be advised if you are subject to such limitations.