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  • By Finance VP

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    The 401k plan is a retirement savings plan where employees set aside a percentage or fixed amount from each paycheck and the employer matches up to 5% of contributions. For example, a VP contributing 15% of their $750 bi-weekly paycheck would have $112.50 set aside, with the employer adding an additional $5.63, resulting in $118.13 going into their 401k each pay period. Over the year, their contributions of $2,250 would grow to $2,362 with the employer match. Employees must choose to either start participating by selecting a contribution percentage or amount, or suspend their participation.

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    401k

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    The 401k plan is a retirement savings plan where employees set aside a percentage or fixed amount from each paycheck and the employer matches up to 5% of contributions. For example, a VP contributing 15% of their $750 bi-weekly paycheck would have $112.50 set aside, with the employer adding an additional $5.63, resulting in $118.13 going into their 401k each pay period. Over the year, their contributions of $2,250 would grow to $2,362 with the employer match. Employees must choose to either start participating by selecting a contribution percentage or amount, or suspend their participation.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    56 views4 pages

    By Finance VP

    Uploaded by

    api-429922711
    The 401k plan is a retirement savings plan where employees set aside a percentage or fixed amount from each paycheck and the employer matches up to 5% of contributions. For example, a VP contributing 15% of their $750 bi-weekly paycheck would have $112.50 set aside, with the employer adding an additional $5.63, resulting in $118.13 going into their 401k each pay period. Over the year, their contributions of $2,250 would grow to $2,362 with the employer match. Employees must choose to either start participating by selecting a contribution percentage or amount, or suspend their participation.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 4

    Why you should

    choose the 401k


    plan
    By Finance VP
    What is the 401k plan?
    The 401k plan is a “retirement” plan, in which
    you will set aside a certain percentage or
    amount of each check into a savings account,
    and we will match up to 5%.

    Basically, you will get up to 5% more of what you


    invest at the end of the year.
    Example
    A VP gets paid $750 per pay period (bi-weekly)

    15% of $750 = $112.50 per pay period

    5% of $112.50=$5.63 Additionally

    Grand total=$118.13

    Per year set aside=$2,250

    Given back=$2,362
    Instructions
    ● Only highlighted sections are needed
    ● Select either START or SUSPEND
    ● If you choose SUSPEND, sign on the
    bottom of page
    ● If you choose START, pick either a
    PERCENTAGE or $AMOUNT to give
    from each check

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