ENROLLMENT APPLICATION
Published on Monday, April 26, 2021
CLICK HERE to access the Enrollment Application for 2021
Enrollment Applications for the Supplemental 401(k) Retirement Plan are now available for changes effective with July 2021 hours. If you would like to enroll or make changes to your existing classification pursuant to the collective bargaining agreement (such as the MLA), you must complete a new Enrollment Application. You can find the Enrollment Application in this newsletter, on our website, or by calling us at (925) 686-5880 to have it emailed to you.
The deadline for accepting 401(k) changes is a postmark date of May 31, 2021. All changes will be effective with July 2021 hours.
No action is required if you are not making changes or enrolling at this time.
Please note: Changes to your Credit Union Deduction (only) can be made at any time and are generally effective the 1st day of the month following receipt of your application. However, if you wish to make a change to your Credit Union Deduction effective July 1, 2021, you must clearly state your wishes on your Enrollment Application.
Changes to the Health Reimbursement Account (HRA) will be available to be made at the next enrollment period at the end of this year.
Supplemental 401(k) Retirement Plan
This Plan complies with IRS guidelines. Under the 401(k) Plan, an Employee will be given the option of deferring a portion of his or her wages to the 401(k) Plan. However, as explained below, there are certain limits established by Congress and the Internal Revenue Service (“IRS”) that the Plan must follow.
1. Election to Defer a Portion of your Wages to the 401(k) Plan. You will be permitted to elect a specific amount that you wish to be deferred to the 401(k) Plan. The deferral amounts for 2021 will be: $2.00; $4.00; $6.00; $8.00; $10.00 per hour (subject to the maximum limits summarized in number 2 below). There are also deferral amount options available to members who are age 50 or older, during the 2021 calendar year, in the amount of $12.00 and $13.00 per hour (subject to the maximum limits summarized in number 2 below).
The current enrollment period in which you will be able to elect to change amounts deferred to the 401(k) Plan will take place through May 31, 2021, and will be effective with July 2021 hours. An Employee’s election will remain in place until the next election period. Any deferral amounts will be in addition to the “Mandatory” Employer Contribution in the Collective Bargaining Agreement (such as the Master Labor Agreement).
If you previously designated an amount to be allocated to the Supplemental 401(k) Retirement Plan and wish to make a change, A NEW FORM IS REQUIRED and must be submitted no later than May 31, 2021, to make a change effective with July 2021 hours.
2. $19,500 and $26,000 Deferral Limits for 2021 Imposed by the IRS. Pursuant to IRS guidelines, the maximum amount that can be deferred to a 401(k) Plan is $19,500 for the calendar year (2021); however, for Employees who are age 50 or older, during the 2021 calendar year, the IRS permits an additional catch-up contribution of up to $6,500 each year. Thus, the maximum amount that a person age 50 or older can defer is $26,000. These are the same amounts that were applicable in 2020, as the IRS made no changes in these limits for 2021.
The record keeper (currently Kaufmann and Goble) will attempt to monitor your deferrals to ensure that the maximum deferral amounts are not exceeded during a calendar year. Any amounts received in excess of the IRS guideline maximums will be reversed by the record keeper and paid to you as wages. When determining deferral maximums, this will not include any “Mandatory” Employer contributions required by your Collective Bargaining Agreement. However, since you are the only party who knows the actual number of hours that you have worked and the total deduction that has been remitted on your behalf, you will want to monitor your deferrals to prevent headaches come tax time.
3. FICA/FUTA Withheld From Deferral Amounts. Pursuant to IRS guidelines, amounts deferred by an Employee to a 401(k) Plan are subject to Social Security and Medicare withholdings (“FICA”) and Federal Unemployment taxes (“FUTA”). As a result, FICA and FUTA taxes will be deducted by your Employer from the deferral amounts.
4. Investment Options Remain the Same. Your Plan assets will continue to be invested in the same manner as in the past and you will continue to have the same options available to you. While your statements show both a 401(k) balance and Supplemental 401(a) Pension Plan balance, the funds are invested together.
