401K (Retirement Plan)

A 401(k) is an employer sponsored benefit that your Operator generously set up that allows you to save money, invest, save on taxes, and have the chance to receive a matching employer contribution. You have the ability to defer money directly from your own paycheck to save towards retirement and your Operator is able to come alongside you to provide a company contribution.

• It is easy! Your 401(k) contribution is pulled directly from your paycheck, in an amount you specify, automatically and before you can spend that money elsewhere. Putting retirement savings aside before it hits your bank account is a behavioral guardrail helping you prioritize preparation for retirement.

• Your money can work for you! Instead of saving your money in a bank account, you have the ability to invest in professionally managed investment options that will grow over time.

• Your Operator generously pays for all the administrative fees to help your money grow faster. This is a smart way to set yourself up for financial success.

• There are some great tax advantages to leveraging the 401(k). You can choose to put your own money in either pre-tax (saving taxes now) or Roth (saving taxes later). Your money can grow tax-deferred, meaning you won’t be paying taxes year-to-year while your money is invested in the 401(k)

21 years of age, 1 yr of service, 1000 hours of service

There are 3 areas of eligibility in order to participate in this 401K plan.

• Age: You must be 21 years of age.

• Years of Service: You must have worked for at least 1 year from your date of hire.

• Hours of Service: You must have worked at least 1000 hours in that year of service.

If you meet the above criteria - You’re eligible!

FREE Money from your Operator to help you grow your retirement savings faster! You will get a $ for $ (100%) match on the first 1% you contribute of your own money. Then you will get a 50% match on the amounts you contribute up to 6% of your income. Examples:

• If you contribute 2% of your own money, you will receive 1.5% from your Operator for a total of 3.5% of your compensation.

• If you contribute 3% of your own money, you will receive 2% from your Operator for a total of 5%.

• If you contribute 6% (or more) of your own money, you will receive 3.5% from your Operator for a total of 9.5%.

When you become eligible to participate in this 401k, you can choose how much you want to contribute and whether the contribution is pre-tax or after-tax Roth. If you take no action, the default contribution is 3% pre-tax. If you still take no action, your contribution rate will go up 1% each year (up to 10%). If you don't want to participate, make sure to login to your new 401k account and set your contribution amount to 0%. You can set your contribution % to something else like 2% or 10% and select Roth or pre-tax. You can make these changes at any point throughout the year and they will affect payrolls going forward.

Preparing for retirement is a major step; often this can be confusing and you may be unsure about where to put your Contributions. There are different ways that participants can contribute to their retirement plan.

There are two types of contributions you can choose from, these are Roth and Pre-tax. It's important to know that these contribution types are the most commonly associated with 401(k) or to other retirement plans and these are sometimes referred to as a ‘salary deferral’. Read below

Differences between Roth and Pre-Tax

• The differences between Roth and Pre-Tax is pretty simple as the major difference is the tax treatment.

• Pre-tax: The strategy with Pre-tax is “don't tax me on it now, tax me on it later”. You’ll put money in without paying taxes on it, and you’ll pay taxes when you withdraw the funds after you retire. Your income tax burden for your current year will be reduced, but you’ll be on the hook for taxes later.

• Roth: The strategy with Roth is “pay now, don't pay tax on it later”. You’ll pay income taxes now, and then put that taxed money into the retirement account to invest. Your current year income tax burden won’t change, but you’ll never pay taxes on this money again.

Vesting is a term used to let you know when you can keep what your Operator gave you - remember that free money we discussed?! Whatever you contribute from your own money is always yours. In order to keep that (up-to) 3.5% company match, you must complete 2 years of service from the date you were hired. A year of service is measured by any calendar year in which you reach 1000 hrs of service. As long as you have 2 calendar years where you worked at least 1000 hrs, you will be vested in the 401k company match.