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Retirement Savings Plan
Retirement Savings Plan (RSP) - Voluntary Employee Contributions
You may make voluntary employee contributions to the Retirement
Savings Plan (RSP) of 1% to 50% of your gross pay for each pay
period through authorized payroll deductions. A separate employee
contribution account will be maintained for you.
If you are working under one of the NECA Constructions bargaining
agreements or one of the many NECA Industry Support bargaining
agreements, you will be eligible to make 401(k) voluntary
contributions Pre-Tax during the first pay period beginning
on or after Beginning July 1, 2020. If
you are working under another bargaining agreement or under a
special agreement that makes employer contributions to this plan,
you are eligibility will depend on whether your employer has taken
action to permit these Pre-Tax voluntary contributions.
You must notify your employer in writing through the Voluntary
Employee Contributions Election Form to
start making voluntary contributions, or to change the percentage
rate of your contributions, or to discontinue your contributions.
401(k) voluntary Pre-Tax contributions are tax deductible.
401(k) voluntary pre-tax contributions are made in the same manner
as the After-Tax contributions, and are always vested and
separated from your After-Tax voluntary contributions. You
may withdraw funds from your Pre-Tax employee contributions
account after you terminate employment from a contributing
employer.
Voluntary After-Tax Contributions
Voluntary After-Tax contributions are not tax deductible.
The earnings that accumulate on your voluntary After-Tax
contributions will be tax deferred - no taxes will be due until you
withdraw the earnings. You may withdraw funds from your
After-Tax employee contribution account twice per calendar
year. The minimum amount that may be withdrawn is $200.
When you make a withdrawal from your
employee After-tax contribution account, you cannot elect to
remove all of the contributions and leave only the earnings. A
portion of the total dollar amount you choose to withdraw will be
voluntary contributions and the remaining part will be associated
earnings. Withdrawal of earnings is taxable income and subject to
federal income tax withholding of 20%. No federal income tax will
be due on the voluntary contributions you withdraw.
Summary of Material Modifications
Summary of Material Modifications are mailed to all plan
participants when a material change is made to the Plan.
IMPORTANT, PLEASE NOTE:
The notification to start a payroll deduction for Voluntary
Employee Contributions must be given to your employer. If you change
employers; you need to notify your new employer immediately that you
wish Voluntary Employee Contributions to be made to the Plan on your
behalf by completing a new form. If you don’t notify your new
employer, no Voluntary Employee Contributions will be made.
Advance notice is required to start the contribution, change the
percentage rate, or discontinue the Employee Contribution. Contact
your employer to determine when you must submit your notice to make
your election effective for a pay period. You are responsible for
notifying your employer if the correct amount is not being deducted
from your pay.
There is some possibility that your maximum voluntary contributions
will be less than your election because of limits under federal
law. We will advise you if this applies to you.
You beneficiary previously designated by you and indicated on the
Enrollment Form
for the Retirement savings Plan will be the beneficiary for both
Employer and Employee Contributions Accounts.
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