Benetech Salary Reduction Agreement

In addition to employee remuneration, there are two basic types of company contributions: company bonuses and company profit-benefit contributions. The match contribution is paid into accounts of employees who have moved the salary to the plan and who have met the requirements of the plan to obtain a match contribution. The contribution to the match may be discretionary and fixed each year, or it may be "determined" in which case the contribution would be required each year. The discretionary contribution to profit-benefit is paid into the accounts of all authorized employees. Any Participant to which this Agreement applies shall be informed in writing of the rights and obligations of this Agreement. Such communication shall be made within a reasonable time before the beginning of the year and before the reduction of the first salary deferral under this Agreement for a new authorized employee. It must not be more than 12 months of service to participate in the salary deferral and safe harbor of a 401(k) plan. However, participation in other parts of a defined contribution plan or defined benefit plan can take up to 24 months, provided that all members are immediately 100% unwavering upon entry into the plan (d.b. for benefit periods longer than 12 months, no unwavering plan can be used). A participant can make a choice to defer part of their salary as an input or after-tax VAT contribution (i.e. ROTH) to a 401(k) plan. These contributions are called "voter rates of pay" (or "deferrals").

A participant`s deferral amount must not exceed the dollar limit set by the IRS for the calendar year ($19,000 in 2019) and must not exceed 100% of gross salary (in practice, the plan`s limit should be set at 90% to allow for Social Security and other deductions). A participant aged 50 or older can complete an additional $6,000 (2019 limit, indexed annually). Other plan or corporate contribution limits can further reduce the percentage a participant can contribute to the plan. Employee visits are considered an assignment to determine if a high-level contribution is required, but not to meet the top heavy contribution requirement. Therefore, in a 401(k) plan without safe harbor provisions, if a key employee deferred salary in a top heavy plan, a higher contribution requirement for that year would be triggered, even if the company does not contribute to the coincidence or profit-taking. . . .

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