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

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Presentation on theme: "Profit Sharing Plan The information contained in this document is not for use or disclosure outside Makotek, LLC."— Presentation transcript:

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

2 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.

3 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.

4 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.

5 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

6 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.

7 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.

8 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.


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