ETIC 401(K) PLAN is a DEFINED CONTRIBUTION PLAN. This type of Plan generally establishes an account for each individual Participant where a defined amount is being contributed by the Participant, the employer or both. Some examples of this type of plan are 401(k), 401(a), Employee Stock Ownership Plan (ESOP), Savings Plans and Profit-Sharing Plans.
With this type of plan, the Alternate Payee is typically awarded a portion of the Participant's account balance as of a specific date, expressed as either a percentage, or as a specific dollar amount, by way of a Qualified Domestic Relations Order (QDRO). The Plan will establish a separate account for the Alternate Payee and will usually allow the Alternate Payee the opportunity to utilize investment opportunities that are available for other participants in the Plan. This type of plan generally affords an Alternate Payee the ability to receive an immediate lump sum distribution (or withdrawal) upon approval of a QDRO. The Alternate Payee may also choose to transfer the awarded funds to another tax qualified account of his/her choice – for example, to an Individual Retirement Account (IRA). It is important for an Alternate Payee to consult with a tax professional before making any transfers or withdrawals, in order to be fully informed as to any potential tax consequences arising from either the timing or nature of the transfer or withdrawal.
Features of the ETIC 401(K) PLAN may include:
- This Plan is a “Profit-Sharing Plan”, where employer contributions are variable and are based upon a portion of company profits based upon quarterly or annual earnings.
- This Plan permits Participants to direct the investment of his or her retirement accounts.
- This is a cash or deferred arrangement described in Code section 401(k) that is part of a qualified defined contribution plan and provides for an election by employees to defer part of their compensation or receive these amounts in cash. It is also known as a “401(k) Plan”.
- This is a Plan where employee contributions are allocated to separate accounts under the plan or employer contributions are based, in whole or in part, on employee deferrals or contributions to the plan.
- This is a plan where Participant-directed brokerage accounts are provided as an investment option
- This is a plan that provides for automatic enrollment for employees and has elective contributions that are deducted from payroll
- This Plan is an “Age/service weighted” or “new comparability” or similar plan. An “Age/service weighted” plan is a plan where allocations to the Plan on behalf of a Participant are based on age, service, or age and service. “New comparability” or similar plans are where allocations to the Plan are based on participant classifications. Classification(s) consists entirely or predominantly of highly compensated employees; or the plan provides an additional allocation rate on compensation above a specified threshold, and the threshold or additional rate exceeds the maximum threshold or rate allowed under the permitted disparity rules of Code section 401(l).
- This is a plan that provides for total or partial participant-directed account(s). In other words, this Plan uses a default investment account for participants who fail to direct assets in their account.
DISCLAIMERS
The Plan features and descriptions presented are provided only
as examples and general descriptions a particular type of
plan. Participants and Alternate Payees should ALWAYS review
the applicable Summary Plan Description for a detailed
description of the specific terms and options for the specific
Plan in question.
The information provided on this page is based upon the most
recent Plan tax filings available. The terms of a specific
plan may have changed since the most recently available tax
filing, and as a result, these descriptions and features may
not be current. SimpleQDRO makes no representations as to
accuracy of these descriptions.
SimpleQDRO is
neither the administrator, nor a representative of this Plan.
SimpleQDRO provides this information merely as a courtesy and
makes no warranties as to the current status or accuracy of
these descriptions.