Profit Sharing Plan The information contained in this document is not for use or disclosure outside Makotek, LLC.

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Presentation transcript:

Profit Sharing Plan The information contained in this document is not for use or disclosure outside Makotek, LLC.

What is a Profit Sharing Plan?  A plan where your employer contributes a share of the company profits to a plan for eligible employees for retirement.  Contributions are at the employer’s discretion and are typically based on how well the total company performed.  You will receive the value of the account upon retirement, death, or disability.  You can take the “vested portion” of your plan with you upon leaving Makotek.  You can take an “in-service distribution” of a portion of your vested amount while still employed with Makotek. The information contained in this document is not for use or disclosure outside Makotek, LLC.

Who manages the Profit Sharing Plan?  The plan is managed by Trustees.  Professional specialty firms are used to manage the plan.  Pershing, a leading provider of comprehensive financial services worldwide, handles the investment side of the plan.  The Pension specialists handle the administrative side of the plan. The information contained in this document is not for use or disclosure outside Makotek, LLC.

Employee  You are eligible when you have completed 1000 hours of service in each 12 month period.  You must be employed for more than 1 year on December 31 st to be eligible for the plan.  Individual Statements are mailed annually and show your account summary including: Prior Balance Gains/Losses Contributions Expenses Ending Balance Vested Balance The information contained in this document is not for use or disclosure outside Makotek, LLC.

Vesting Schedule Years of Service % Vested Less than 1 0% 1 but less than 2 0% 2 but less than 3 20% 3 but less than 4 40% 4 but less than 5 60% 5 but less than 6 80% 6 but less than 7 100% The information contained in this document is not for use or disclosure outside Makotek, LLC.  When an employee leaves Makotek, the unvested portion of the separated employee is distributed (based on % of plan) to the remaining plan participants

Employer Contribution  Is discretionary each year based on company performance.  The plan can be terminated by employer at any time.  Participant Accounts are funded based on employee compensation as a percentage of total compensation of eligible employees. Example $100,000 contributed to Plan  $1,000,000 total payroll of eligible employees  $40,000 your salary or 4% of plan  $4,000 your share of contribution  Expenses to the plan are paid by plan. The information contained in this document is not for use or disclosure outside Makotek, LLC.

In-Service Distribution  In-Service distributions can be taken from your vested portion of your account while you are employed.  In-Service distributions parameters are: Maximum available is current vesting percentage multiplied by their total balance 2 years ago Early distribution taxes, fees, and IRS penalties apply unless the distribution is a direct rollover into a qualified plan or IRA Amount distributed is not eligible for future plan earnings or forfeitures To apply, download and fill out the In-Service Distribution Form on the Makotek website The information contained in this document is not for use or disclosure outside Makotek, LLC.

Other Information  Copy of Summary Plan Description available to review at each office.  Rollovers are not permitted into plan.  The plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).  Plan is invested in total by the Trustees, not managed individually by the employee as in a 401k. The information contained in this document is not for use or disclosure outside Makotek, LLC.