  |
|
|
|
To view/or print an
ALLEGIANT
MANAGEMENT 401(k) SAVINGS PLAN The
401(k) Plan for Employees Is . . . The
term “401(k)” refers to a special kind of qualified savings plan named for a
section of the Internal Revenue Code which allows for a “cash or deferred
arrangement” type of retirement plan. In plain language, a 401(k) is a savings plan established by
an employer, which allows employees to contribute and accumulate savings on a
tax-favored basis. The Plan allows
employees to save for retirement by using systematic payroll deductions on a
pretax basis, which reduces their taxable income during working years to build
for retirement. 401(K) Plans are
designed to be long term savings plans and are significantly different from a
regular savings account. Once a
401(k) account is started, it can only be terminated due to the following
reasons: Employment Termination, Retirement, Total Disability, or upon Death.
Therefore, all amounts contributed to a 401(k) Plan, should be viewed
strictly as savings for retirement. The New England Mutual Insurance Company, of Boston, Massachusetts, manages the Allegiant Management 401(k) Plan assets. The New England has more then 50 years of pension experience and is one of the countries largest money managers, administering over 20,000 pensions plans and managing over $60 billion in total assets. The New England has been acknowledged for it’s superior financial condition and operating performance by A. M. Best Company with a rating of A+ (Superior) and by Standard & Poor's with a rating of AA- (Excellent). EMPLOYEE
CONTRIBUTIONS: Participation
is strictly voluntary and all contributions must be made by payroll deduction.
Contributions are not subject to Federal or State income taxes except in
New Jersey and Pennsylvania. All
401(k) contributions, however, are subject to Social Security taxes (FICA).
The Allegiant Management 401(k) Plan is non-contributory, meaning
Allegiant Management or the Client Company contributes no matching funds.
Therefore, all funds and accumulated interest are 100% vested or owned by
the employee. All
eligible employees may elect to contribute between 1% to 20% of their annual
earnings. The
maximum amount that can be contributed for 2002 is $11,000.00.
This amount is usually increased every other year.
Employees who earn more than $85,000.00 are considered highly compensated
and may be limited to investing less than the maximum amount based upon
non-discrimination testing results. Employees
may change the amount they contribute four times a year: January 1st, April 1st, July 1st, and October 1st.
A Change Form must be completed with The Plan Administrator prior to
the start of the quarter. Contributions may be stopped at any point in time by
contacting The Plan Administrator. Contributions
stopped voluntarily may be resumed on the first day of any following quarter. ROLLOVER
CONTRIBUTIONS: Rollover
from a former employer’s retirement plan will be accepted into the Plan at any
point in time. This means that
rollovers can be made at any time of the year and even before the individual is
eligible to participate in the Plan. Only
certain types of IRA accounts may be rolled into the 401(k) Plan. EMPLOYEE
ELIGIBILITY REQUIREMENT ARE AS FOLLOWS: · Must have attained the age of 21 years. ·
Must
have completed 6 months of service with Allegiant. Both
full and part time employees, working 17 hours or more per week, are eligible to
participate. New enrollees in The
Plan will begin participation on the first day of the next calendar quarter
after satisfying the eligibility requirements.
There is an annual administration fee of $32.00, which will be deducted
by The New England from each
participant in The Plan. There is also a $20.00 check charge each time The New England
processes a distribution check such as a loan or upon distribution of the
account. INVESTMENT
OPTIONS: We
realize that investment goals vary for each participant.
Therefore, The Plan allows our employees the flexibility to move their
account balance between ten (10) different investment options or to invest in
all of the funds. The ten (10)
investment options are: listed from
most aggressive to most conservative. TEMPLETON
FOREIGN FUND
- Seeks
long-term capital growth by investing primarily in stocks of companies outside
the US, but it may also invest in stock or debt obligations of any foreign
company or government. While non-US stocks have sometimes produced higher returns
than US stocks, they also carry considerable risks due to variables such as
world events and currency fluctuation. JANUS
WORLDWIDE ACCOUNT
- Seeks long-term growth of capital in a manner consistent with preservation of
capital. Invests primarily in
common stocks of foreign and domestic issuers. CREDIT
SUISSE
CAPITAL
APPRECIATION ACCOUNT
-
Seeks long-term capital appreciation by investing in a broadly diversified
portfolio of equity securities of larger size domestic companies.
The fund attempts to identify market sections and companies with the
potential to outperform the overall market. ALGER
EQUITY GROWTH ACCOUNT
- Seeks long-term capital appreciation. The
fund is a diversified portfolio of equity securities, primarily of companies
having a total market capitalization of 1 billion or more.
The majority of companies in which the fund invests are traded on the
domestic stock exchange or in the over-the-counter market. CGM
CAPITAL GROWTH ACCOUNT -
Seeks long-term returns that are significantly greater than stocks indices such
as the S & P 500 Stock Index. The
account invests in a limited number of mostly common stocks that are believed to
hold potential for major capital appreciation and superior or long term
investment results. T.
ROWE PRICE EQUITY INCOME NEF ACCOUNT
- Seeks to provide substantial dividend income and long-term capital
appreciation. The fund invests
primarily in dividend paying common stocks, usually of established companies,
with favorable prospects for both increasing dividends and capital appreciation. WESTPEAK
EQUITY SECURITIES ACCOUNT
- Seeks above average, long-term investment return from a combination of
market appreciation and moderate current income.
The fund invests in approximately 300-350 stocks of the S & P 500
Index using a conservative diversified portfolio structure. LOOMIS
SAYLES BALANCED SECURITIES ACCOUNT
- Seeks reasonable long-term total returns through a combinations of capital
growth and moderate current income. The
fund invests in both stock and bonds with a heavier concentration of stocks
during strong markets and a heavier concentration of bonds during market
declines. LOOMIS
SAYLES CORE BOND ACCOUNT
- Seeks an above average return from a combination of coupon income and capital
growth. The fund is comprised of a
variety of qualified fixed income securities with a wide range of maturities,
including government bonds and marketable debt securities from well-established
US Corporations. INVESTMENT
CHANGES: Changes
in investment elections may be made as often as each day by calling The
New England’s 1-800 Participant Line.
You may change both where your existing account balance is invested or
just where your future contributions will be invested. ACCOUNT
BALANCE INFORMATION: Contributions
are deducted weekly by Allegiant Management
and forwarded to The
New England
at the end of each month. Each
participant’s account balance is updated daily by The New
England.
All participants will receive a quarterly statement showing their account
balance, contributions, withdrawals or any other account activity that occurred
over the previous three months. Participants
may also check their account balance by using The
New England’s 1-800 Participant Line, their Social Security Number, and
assigned PIN # (Personal Identification Number)
issued by The
New England
to each participant. Participants
may also use the Participant
Line
to transfer their funds, determine the amounts available for a loan, check
investment funds performance, etc. The
participant line is on-line at www.ners401K.com.
401(K)
TAX SAVINGS EXAMPLE:
How
does a 401(k) Plan works? Assume a
participant earns $30,000.00 a year and elects to put 8%
into The Plan. Income taxes are paid on $27,600.00 rather than
$30,000.00! If
the same $2,400.00 is put into a personal savings account on a non-tax
favored basis, taxable income is not reduced.
Saving an identical amount through 401(k) deferrals, actually increases
SPENDABLE dollars by the amount of reduced income taxes.
Participation in a 401(k) Plan can be more advantageous
than the establishment of an IRA (Individual Retirement Account) because
one can only contribute up to $2,000.00 annually into an IRA Account.
NO
PLAN
401(K)
(After
Tax)
PLAN ANNUAL
SALARY
$30,000 $30,000 401(K)
DEFERRAL (8%)
0
2,400 GROSS
TAXABLE WAGES
30,000
27,600 ESTIMATED
INCOME TAX (21%) 6,300
5,796 ESTIMATED
FICA TAX (7.65%) 2,295
2,295 TRADITIONAL
AFTER TAX SAVINGS 2,400
0
(8%) SPENDABLE
INCOME
$19,005
$19,509 While
in The Plan, the earnings on contributions accumulate tax-free. No
income tax is paid on this money until it is withdrawn. PLAN
WITHDRAWALS:
Your
retirement account may only be withdrawn only in the event of Retirement,
Death, Disability, Termination of Employment or Financial Hardship. The following reasons qualify as Financial Hardship and must
be documented: A.
Medical Expenses B.
Purchase of Primary Residence C.
College Tuition D.
Prevention of Eviction from Primary Residence Withdrawals
due to Termination or Financial Hardships may also be subject to a 10% IRS
penalty tax if the individual is below age 59 1/2 years of age. Upon
termination of employment, the account can either be rolled over into another
employer’s plan or IRA . The
account may also be taken as a cash distribution, however, the law requires that
20% of the account balance be withheld and forwarded to the IRS as a tax
payment. If the account balance is
greater than $5,000.00, the individual has the option of leaving the money in
the Allegiant Management 401(k) Plan where it will continue tax-favored
accumulations. PLAN
LOANS:
Plan
loans are available to active participants who may borrow up to 50% of their
vested account balance (maximum of
$50,000.00). The minimum loan
amount is $1,000.00. Loan payments
must be made through payroll deduction and may be spread over a period of up to
five (5) years. The interest rate
is equal to the prime interest rate plus 1%. All interest payments made on the loan are actually paid back
into the individual’s account. A
loan may be considered in default if the participant terminates employment
before the loan is repaid. Upon
default, the participant may either repay the outstanding balance or take it as
a cash distribution, subject to taxation and penalties.
However, the individual can rollover the remaining account balance, on a
tax deferred basis. This
brochure is designed to be a general summary of The Plan’s features, any
further questions should be directed to the Allegiant Management’s 401(k) Plan
Administrator.
|
|
Send mail to webmaster@harbourlight.com with
questions or comments about this web site.
|
version of this
page Click