401(k) Retirement Plan

Your 401(k) plan is a tax-advantaged retirement account designed to help you prepare for the future.

Associates are eligible to join the plan unless you are an employee who is:
•  a nonresident alien
•  a leased employee
•  represented by a bargaining unit that has bargained with us in good faith on the subject of retirement benef

If you meet the above requirements, you are eligible to join the plan:
•  if you are age 18
• the 1st of the month following hire

Are there limits to my contributions?
You may choose to contribute up to 100% of your total pay. Your taxable income is reduced by the amount you contribute pre-tax through salary deferral. Your total salary deferral in 2024 may not be more than $23,000.00. Your maximum contribution percentage and/or dollar amount may be limited by Internal Revenue Service regulations.

If you are 50 years old or older during the plan year you may contribute a catch-up deferral of up to $7,500 in 2024 above the contribution limit.

Your salary deferral contributions are included in the wages used to determine your Social Security tax.

Can I make after-tax, Roth salary deferral contributions?
You may designate any amount of the available salary deferral limit for a plan calendar year as Roth salary deferral contributions. Roth salary deferral contributions are made on an after-tax basis. Roth salary deferral contributions plus your pre-tax salary deferral contributions are counted toward the annual salary deferral contribution amount and salary deferral contribution percentage mentioned above.

Can I change my contributions to my employer’s retirement plan?
You may stop or change your salary deferral contributions at any time. Changes will be implemented as soon as administratively feasible.

Employer Contributions
McCownGordon will match 100% of the first 3% of pay you contribute to the plan through salary deferral plus 50% of the next 2% you defer. When a matching contribution is made to the plan, it will be calculated based on salary deferrals and pay as of the end of the plan year.

You will receive contributions if you are an active participant at any time during the plan year.  Employer contributions may change in the future.

Plan Summary
This plan summary includes a brief description of McCownGordon’s retirement plan features. The legal plan document provides full details. If there are any discrepancies between this plan summary and the legal plan document, the legal plan document will govern. McCownGordon may elect to amend the retirement plan provisions. Until a plan amendment is adopted, the legal plan document will govern.

Most withdrawals/distributions are subject to taxation and required withholding. Check with your financial/tax advisor on how this may affect you. The Principal is required by the IRS to withhold 20% of the portion of a distribution that is eligible for rollover if it is not directly rolled over to another eligible retirement plan or used to purchase an annuity to be paid over a minimum period of the lesser of 10 years or the participant’s life expectancy.

The retirement account may be affected differently by individual state taxation rules. Contact your tax advisor with questions. If you have questions about the retirement plan, call 1.800.547.7754 Monday through Friday, 7am-9pm (Central time) to speak
to a retirement specialist at The Principal. To learn more about The Principal visit principal.com. Insurance products and plan administrative services are provided by Principal Life Insurance Company, a member of the Principal Financial Group (The
Principal) Des Moines, IA 50392.