Participants have three decisions to make about their contributions and account:
- For plans with a 401(k) feature, do they want to make contributions to the plan? If they do, how much do they want to contribute and in what form will contributions be made (pre-tax elective contributions, after-tax employee contributions and/or Roth 401(k) contributions). Note that a participant’s elective contributions for the year can’t be greater than the IRS annual deferral limit ($18,000 in 2015). A participant who has reached age 50 by the end of his or her taxable year may make additional catch-up contributions (maximum $6,000 in 2015).
- How do they want to invest employee (if applicable) and/or employer contributions among the funds offered by the Program? (More information is available in Investment Election Changes & Transfers.)
- Who should they name as beneficiary or beneficiaries?
Refer to Eligibility & Data Changes for more information. Participants make their investment election decisions when they complete the Enrollment Form. Participants may make subsequent changes to their investment elections as described in Investment Election Changes & Transfers. Your firm may also have forms that participants can use to establish or change the amounts or percentages of their 401(k) pre-tax elective deferral contributions, voluntary after-tax employee contributions (if allowed) and/or Roth 401(k) elective deferral contributions.
Please note that if the plan has an automatic enrollment design feature, an eligible attorney or staff member shall be deemed to have elected to participate at a level provided in the firm’s adoption agreement, unless the eligible participant makes an affirmative election to contribute a different amount including an election to not defer.