You plan your work. You plan your day. You plan your vacations. Now, plan for retirement by saving pre-tax dollars with the Company’s 401(k) Savings Plan. You may also use the Roth feature to make after-tax contributions.
All full-time and part-time employees, age 18 and above, of an Ensign Services-affiliated company may join the plan on the first of the month following 3 months of service. Per diem, on-call and temporary employees are not eligible.
- Your Contributions: You can contribute up to 90% of your pay on a pre-tax or Roth after-tax basis, up to the annual IRS limit ($19,500 for 2020). If you are age 50 or older, you’re eligible for an additional “catch-up” contribution ($6,500 for 2020). You can change how much you are contributing at any time, effective within the next two payroll periods.
- Company Contributions: Currently, the Company matches the first 2% of compensation that you contribute at the rate of $.25 for each $1.00 you contribute. You become entitled to (are vested in) the Company’s matching contribution at the rate of 25% per year of service, with 100% vesting after four years of service. The Company may make a discretionary matching contribution.
Roth 401(k) Feature
You can save for the future through a Roth 401(k) as part of the 401(k) Savings Plan. Contributions are made with after-tax dollars. You do not get an upfront tax-deduction, as you do with regular pre-tax 401(k) contributions; however, your Roth 401(k) account grows tax-free. Withdrawals from your Roth account taken during retirement are not subject to income tax, provided you’re at least 59-1/2 and you’ve held the account for five years or more.
Investing Your Account
You direct how your account is invested. You choose from a variety of funds offered through Fidelity, including “target date” funds to align with your estimated retirement date. You can change how your account is invested on a daily basis.
Receiving Money from Your Account
The plan is intended to accumulate funds for your retirement. If you leave the Company before retirement, you may roll over the money to another employer’s plan or to an IRA to keep it tax deferred. If you die, your beneficiary will receive your benefits. You have access to your funds while you are still employed by the Company at the following times:
- Age 59½
- You become disabled
- You experience a financial hardship