Profit Sharing 401(k)
Dow Aero Logistics ("Company") offers eligible employees retirement benefits in the form of a Traditional 401(k) and Roth 401(k).
Traditional 401(k) versus Roth 401(k)
The main difference between a Traditional 401(k) and a Roth 401(k) relates to the taxation of funding and distributions. When a Traditional 401(k) is funded, the account holder is not taxed on the contribution. This amount is deducted from the individual’s federal income tax return. Alternatively, contributions made to a Roth 401(k) are still taxed upon the contribution being made.
When a distribution is made from a Traditional 401(k), the account holder is subject to taxation on both the contribution(s) and the earnings. Alternatively, the account holder is not subject to any taxation from Roth 401(k) distributions so long as they are qualified.
The Internal Revenue Services (IRS) has set the maximum contribution limit for 2018 to $18,500. The Plan allows for individuals over the age of fifty (50) to make catch-up contributions up to an additional $6,000 beyond the IRS limit.
Your Contributions versus Company Contributions
* Vesting percentage is based on consecutive years of official employment with the Company.
Investing has inherent risks. Although the Company, in correlation with the Company's retirement financial advisor, will make every reasonable effort to choose funds presumed to deliver the strongest performance, there are no certainties on a fund(s) success. For that reason the Company, nor its associates, shall be liable for incurred losses. The Company reserves the right to add and/or remove funds annually. Participants with active shares in a fund(s) being removed will have their shares automatically sold and reinvested into a current and/or new fund(s). The Company may also modify the Plan, including changing the provider, or cancel the Plan at anytime.
Once you have reached your first full consecutive year of official employment with the Company you will be eligible to enroll into this retirement plan. Human Resources will provide additional information required in order to enroll as you approach the anniversary date. Enrollment can be completed online at https://www.jhancockpensions.com/