HomeMy WebLinkAbout20230744.tiffWELD COUNTY
401(k) SAVINGS PLAN
CoMMvt .co-i-;a.13
03 /20 /23
2023-0744
PLAN HIGHLIGHTS
66947
(CL 2007)
Plan Highlights briefly describes the plan. The rest of this booklet explains in greater detail how the
plan works.
We started the plan on January 1, 1985.
Your plan:
• Lets you defer a percentage of your pay by making 401(k) elective deferral contributions under
the plan.
• Allows you to increase your benefits by making voluntary contributions.
• Provides that your account resulting from any money you contribute always belongs to you. The
part of your account that belongs to you from our contributions depends on your service.
• Gives you tax deferral on any earnings until you receive them as benefits. If you choose to make
Roth elective deferral contributions, earnings on such contributions will not be taxable if received
in a qualified distribution (see Part 2).
• Offers different ways to receive your benefits. You choose the right way for you.
If you are already making 401(k) elective deferral contributions, you are on your way to a more
secure future. If you aren't making 401(k) elective deferral contributions, there's still time to start.
About This Booklet
This booklet explains how the plan currently works, when you qualify for benefits, and other
information.
The plan is much more detailed and it governs your benefits.
The terms "your account" and "your vested account" refer to the account that has been set up for
you under the plan. This account includes the amounts contributed to the plan on your behalf and
any investment gains and losses. Use of these terms does not give you any rights to the account or
any assets of the plan other than those described in this booklet.
Ask your plan administrator if you have questions. Part 7 of this booklet lists your plan
administrator's name and address.
TABLE OF CONTENTS
JOINING THE PLAN PART 1
• When You Join
• Signing Up
• Changes in Your Participation
CONTRIBUTIONS TO THE PLAN PART 2
• 401(k) Elective Deferral Contributions
• Makeup Contributions
• Voluntary Contributions
• Helpful Terms
• Limits
YOUR ACCOUNT: VESTING AND GENERAL INFORMATION PART 3
• Your Account
• Investing Your Account
• Vesting in Your Account
• Before Your Vesting Percentage Is 100%
• What Happens to Forfeitures
WHEN THE PLAN PAYS BENEFITS PART 4
• At Retirement
• Required Beginning Date
• Withdrawals From Your Account
• At Termination
• At Death
• Tax Considerations
HOW THE PLAN PAYS BENEFITS PART 5
• At Termination or Retirement
• Death Benefits Before Benefits Begin
• Forms to Choose
IMPORTANT INFORMATION FOR YOU PART 6
• Qualified Domestic Relations Order (QDRO)
• The Plan Administrator
• Processing Distributions and Other Transactions
• Direct Rollovers
• Past Employee Contributions
• Rollovers From Other Plans
• Changing or Stopping the Plan
• Military Service
FACTS ABOUT THE PLAN PART 7
2
PART 1 JOINING THE PLAN
When You Join
You join the plan as an active participant on the day on which you become an employee. This is your
entry date.
Signing Up
To make 401(k) elective deferral contributions, you complete an elective deferral agreement. Part 2
tells you more about these contributions.
You need to complete a form naming the person who will receive any death benefit if you die before
retirement.
You must complete a form telling us how you wish to use the investment options available for your
account (see Part 3).
Changes in Your Participation
You become an inactive participant on the date you no longer work for us.
You stop being a participant on the date you are not an employee and your account is zero.
You rejoin the plan as an active participant when you again work for us.
3
PART 2 CONTRIBUTIONS TO THE PLAN
Plan contributions create an account for you. That account holds your money. Contributions share in
investment earnings or losses. You don't pay taxes on any earnings until later —when you receive
that money. If you choose to make Roth elective deferral contributions, earnings on such
contributions will not be taxable if received in a qualified distribution.
401(k) Elective Deferral Contributions
When you sign up (see Part 1), you tell us how much of your pay you want to defer. Your 401(k)
elective deferral contributions will be pre-tax elective deferral contributions unless you designate all or
a portion as Roth elective deferral contributions by completing an elective deferral agreement.
Your agreement must be signed before it is effective. Your 401(k) elective deferral contributions will
begin or change as soon as administratively feasible following your entry date or any following date.
Your agreement to stop your deferrals may be made on any date and will be effective as soon as
administratively feasible following that date.
Your 401(k) elective deferral contributions are pre-tax elective deferral contributions. These
contributions reduce your total taxable income which reduces your current taxes. These contributions
and any earnings will be taxed later when received as a benefit.
You may designate all or a portion of your 401(k) elective deferral contributions as Roth elective
deferral contributions instead of pre-tax elective deferral contributions. Such designation must be
made before the deferral is made and cannot be changed except for future contributions. Roth
elective deferral contributions do not reduce your total taxable income and do not reduce your current
taxes. Because you pay taxes on these contributions when they are made, these contributions will
not be taxed later when received as a benefit. If these contributions are received in a qualified
distribution, any earnings will not be taxed. If these contributions are not received in a qualified
distribution, any earnings will be taxed when received as a benefit. A distribution will be a qualified
distribution if the following conditions are met:
• The distribution is made on or after the date you attain age 59 1/2, on or after the date of your
death, or as a result of you becoming disabled as defined in the tax code.
• The distribution is made after the end of the 5 -taxable -year period beginning with the first taxable
year in which you make a Roth elective deferral contribution to this plan.
Because each person's tax situation or need for an early distribution is different, you should check
with your tax advisor before designating your 401(k) elective deferral contributions as Roth elective
deferral contributions.
Your 401(k) elective deferral contributions:
• Build income for your retirement years.
• Reduce your income taxes, letting you save for the future with dollars you would otherwise pay
in current taxes. However, Roth elective deferral contributions do not reduce your current income
taxes. Such contributions reduce your taxable income when benefits are received.
4
• May provide investment earnings that aren't taxed until you get your benefits. However, any
investment earnings on Roth elective deferral contributions will not be taxed if received in a
qualified distribution.
You may make catch-up contributions in a taxable year if you will be at least age 50 by the end of
that year. Catch-up contributions are 401(k) elective deferral contributions in excess of any limit on
such contributions under the plan. For 2008, the maximum catch-up contribution is $5,000. For
years after 2008 the maximum is subject to change each year for cost of living changes.
Federal law limits the amount you can defer under all plans. You can find information about the limits
at the end of Part 2.
Makeup Contributions
You can make up missed 401(k) elective deferral contributions and voluntary contributions when you
return to work for us after a period of qualified military service as required by law.
Helpful Terms
Pay means your total pay including your elective contributions to any of our plans.
Elective contributions are salary reduction amounts contributed by an employer at an employee's
election to a 401(k) plan, simplified employee pension, cafeteria plan, qualified transportation fringe
benefit plan, or tax sheltered annuity. Elective contributions also include amounts deferred under a
457 plan or employee contributions "picked up" by a governmental employer and treated as employer
contributions.
Limits
401(k) Elective Deferral Limits
The law limits the amount you may defer in any tax year. For 2008, the limit under all plans of our
type is $15,500. For years after 2008 the limit is subject to change each year for cost of living
changes. If you are also a participant in a plan of an unrelated employer, this limit applies to the
amount you defer under both plans. The combined limit for unrelated plans is increased if you will be
at least age 50 by the end of the year. For 2008, the increase will be $5,000 for a combined limit of
$20,500. For years after 2008, the increase is subject to change each year for cost of living
changes. If you are over the limit, you should request one or both plans to pay any excess to you.
Only amounts over the limit may be paid to you, but you may choose whether it is paid from one or
both plans. If you don't have the excess paid to you, it is taxable to you, but stays in the plans to be
taxed again later when you receive it. Under our plan, you must tell the plan administrator by
March 1 of the following year if you want any excess paid to you. Excess 401(k) elective deferral
contributions paid to you may include Roth elective deferral contributions. This will not be treated as
a qualified distribution and earnings on returned Roth elective deferral contributions will be treated as
regular taxable income.
Pay Limits
The law limits the amount of pay that may be used to determine contributions each year. The 2008
limit is $230,000 ($345,000, if you became a participant before January 1, 1996). This limit is
subject to change each year for cost of living changes.
5
415 Limits
The law also limits the amount of contributions that can be made for or by you to the plan in a year
to the lesser of 100% of pay or a dollar limit. This limit applies to all defined contribution plans of
ours and any related employers. The dollar limit for years beginning after December 31, 2007 is
$46,000. This limit is subject to change each year for cost of living changes.
Ask your plan administrator if you want to know more about these limits.
6
PART 3 YOUR ACCOUNT: VESTING AND GENERAL INFORMATION
Your Account
Your contributions and the contributions we make for you are credited to your account. Your account
equals the current value of these contributions.
Investing Your Account
Contributions made to your account are invested to provide benefits under the plan. We decide which
investment options are available for your account.
Many investment options have charges and restrictions that apply when you remove money or
transfer funds. The dollar amount that can be removed or transferred may be restricted along with
the dates on which such transactions can be made. Your plan administrator can tell you more about
these charges and restrictions and when they wil apply.
You, with our consent, decide how to use the investment options for your contributions and our
contributions for you.
If you do not make an investment choice, we will decide how to use the investment options.
The plan administrator will tell you more about the investment options.
Vesting in Your Account
The part of your account to which you always have a right is called your vested account.
Under this plan, you are always 100% vested in your total account.
7
PART 4 WHEN THE PLAN PAYS BENEFITS
Your vested account will be used to provide benefits. If you stop working for us and your vested
account is $5,000 or less, your benefits will be paid to you at that time.
See Part 5 for how the plan pays benefits.
At Retirement
Unless you choose otherwise, benefits will start on your normal retirement date if you are not
working for us and you have a vested account under the plan. You may choose to have benefits paid
on this date even if you are still working for us.
If you continue working for us after your normal retirement date, your benefits will start on your late
retirement date, unless you elect otherwise.
Normal retirement date means the first day of the month on or after the date you reach your 65th
birthday.
Late retirement date means, if you continue working for us after your normal retirement date, the
earliest first day of the month on or after the date you stop working. You may choose to have your
benefits start on the first day of any month after your normal retirement date and before you stop
working. If you do, that date becomes your late retirement date.
It's possible to have your benefits begin after your late retirement date. If you think you would like to
delay your benefits, talk to the plan administrator before your late retirement date.
Required Beginning Date
Under the law you must begin receiving benefits by your required beginning date. Your required
beginning date is the April 1 following the later of the calendar year in which you reach age 70 1/2 or
stop working for us.
Withdrawals From Your Account
You may withdraw all or any part of your vested account resulting from rollover contributions. You
may make two such withdrawals during any one-year period.
If you have a financial hardship, you may be able to withdraw all or any part of your vested account
resulting from 401(k) elective deferral contributions (but none of the income earned on such
contributions).
Financial hardship means hardship due to immediate and heavy financial need. Federal rules allow
hardship withdrawals for these reasons:
• To pay medical expenses that would be tax deductible (without regard to whether the expenses
exceed 7.5% of adjusted gross income).
• To purchase your primary home, stop your eviction from your primary home, or stop foreclosure
on such home.
8
• To pay tuition, related educational fees, and room and board expenses, for the next 12 months of
post -secondary education for you, your spouse, your children, or your dependents (as defined in
the plan).
• To pay funeral or burial expenses for your parents, your spouse, your children, or dependents (as
defined in the plan).
• To pay expenses to repair damage to your primary home that would be tax deductible (without
regard to whether the expenses exceed 10% of adjusted gross income).
You may not withdraw more than the amount of your immediate and heavy financial need. The
amount of the withdrawal may include the amount of taxes that will result from the withdrawal. To
receive a withdrawal, you must sign a written statement that you are unable to meet your need
another way. If you can meet your need another way, you may not have a withdrawal.
Your request for withdrawal must be in writing on a form provided by the plan administrator. You
must complete and return it before the date of withdrawal.
A charge or restriction might apply for some investment options if you make a withdrawal. Talk with
your plan administrator before you complete the form.
At Termination
If you stop working for us before you are eligible to retire, you may choose to have all or any part of
your vested account paid to you at any time.
You may leave your account under the plan if your vested account is more than $5,000. It will
continue to participate in the plan investments and provide benefits when you retire or die.
At Death
If you die before benefits start, your vested account will be paid to your spouse or beneficiary under
one or more of the forms available under the plan (see Part 5).
If you die after you start receiving benefits, death benefits will be paid according to the form you
chose. Not all forms have death benefits.
Tax Considerations
Benefits you receive are normally subject to income taxes. You may be able to postpone or reduce
the taxes that would otherwise be due. In addition, benefits you receive before age 59 1/2 may be
subject to a 10% penalty tax.
Each person's tax situation differs. Your financial advisor can help you decide the best way for you to
receive benefits.
9
PART 5 HOW THE PLAN PAYS BENEFITS
You make an important choice when you decide how to receive your benefit. Things to consider
include the money you will need every month, any death benefits you want to provide, and your tax
situation.
If your vested account is more than $5,000, you may choose to have your vested account paid under
any of the optional forms available under the plan. Your plan administrator or tax advisor can help
you make your choice. You may also call Principal Financial Group® at this toll -free number for
answers to your benefit questions: 1-800-547-7754.
The amount of the payments will depend on the amount of your vested account and the optional
form chosen. If the optional form pays you a monthly income for life, the amount of the payments
will depend on your age. If the option also provides a monthly income for the life of someone who
survives you, the amount of the payments will also depend on the age of your survivor.
At Termination or Retirement
If your vested account is $5,000 or less, your vested account will be paid to you in a single sum.
Federal law requires the plan to automatically roll your vested account to an IRA in a direct rollover
(see Part 6) if:
• your vested account is more than $1,000
• you have not reached age 65
• you do not elect to have your vested account paid to you in a single sum or rolled to another
retirement plan or an IRA of your choice in a direct rollover
For more information regarding the designated IRA for automatic rollovers see Part 7.
If your vested account is more than $5,000, you may choose from the forms of benefit described in
Forms to Choose below. You may change or cancel your choice at any time before benefits start.
If you don't choose a form, your benefits are paid to you monthly for life. If you die before the total
amount paid equals the amount used to purchase the annuity, payments continue to your beneficiary
until the total amount paid equals the purchase price.
Death Benefits Before Benefits Begin
You may name a beneficiary at any time. You may change your beneficiary at any time.
If your vested account is $5,000 or less, your vested account will be paid to your beneficiary in a
single sum.
If your vested account is more than $5,000, you may choose an optional form of death benefit for a
beneficiary. If you don't choose, that beneficiary may choose an optional form. Generally, a
beneficiary can elect a single sum or any of the annuity options that are available to you at retirement
other than a monthly income that continues for the life of a survivor upon death. Any choice of the
form of payment by your beneficiary must be made before benefits begin.
10
If an optional form of death benefit is not chosen, death benefits are paid to your beneficiary in a
single sum.
Because of Federal rules regarding when death benefits must begin and how death benefits can be
paid, your beneficiary should contact the plan administrator to determine what options are available
and when elections must be made.
Forms to Choose
The plan offers the following optional forms of benefit:
Annuity Options
• A monthly income to you for life. No benefits are payable after your death.
• A monthly income to you for life. If you die before the end of a certain number of years (you may
choose 5, 10, or 15 years), payments continue to your beneficiary until that period ends.
• A monthly income to you for life. If you die before the total amount paid equals the amount used
to purchase the annuity, payments continue to your beneficiary until the total amount paid equals
the purchase price.
• A monthly income to you for life. You choose a percentage (50%, 66 2/3%, or 100%) of your
monthly income to continue for the lifetime of a survivor you name. If both you and your survivor
die before the total amount paid equals the amount used to purchase the annuity, payments
continue to a beneficiary until the total amount paid equals the purchase price.
• A monthly income paid to you for a fixed period of time (not less than 60 months). If you die
before the end of the fixed period, payments continue to your beneficiary until that period ends.
• A series of substantially equal annual payments over a fixed period of whole years. You can
choose to receive the payment on an annual, semi-annual, quarterly, or monthly basis. You may
also request extra payments. Your payments in the calendar year in which you reach age 70 1/2
and later calendar years will be increased to the extent necessary to satisfy the minimum
payment required by law.
• A specified dollar amount each year. You can choose the amount and can choose to receive the
payment on an annual, semi-annual, quarterly, or monthly basis. You may also request extra
payments. Your payments in the calendar year in which you reach age 70 1/2 and later calendar
years will be increased to the extent necessary to satisfy the minimum payment required by law.
Other Options
• A single sum payment.
A charge or restriction might apply for some investment options if you take all or any part of your
account in a single sum. Talk with your plan administrator before making this choice.
11
PART 6 IMPORTANT INFORMATION FOR YOU
Qualified Domestic Relations Order (QDRO)
A qualified domestic relations order (QDRO) is a judgment, decree, or order that provides child
support, alimony payments, or marital property rights. A qualified domestic relations order may give
all or part of your plan benefits to an alternate payee. An alternate payee is your spouse, former
spouse, child or dependent.
The Plan Administrator
The plan administrator has the full power to decide what the plan provisions mean; to answer all
questions about the plan, including those about eligibility and benefits; and to supervise the
administration of the plan. The plan administrator's decisions are final.
Processing Distributions and Other Transactions
Distributions, investment directions, trades, and similar transactions shall be completed as soon as
administratively possible once the information needed to complete such transaction has been received
from you or whoever is providing the information. The time it takes to complete a transaction is not
guaranteed by the plan, plan administrator, insurer, or us.
We or the plan administrator reserve the right not to value an investment option on any given
valuation date for any reason deemed appropriate by us or the plan administrator.
Factors such as failure of systems or computer programs, failure of transmission of data, forces that
can't be controlled or anticipated, failure of a service provider to timely receive values or prices, and
corrections of errors will be used to determine how soon it is possible to complete a transaction.
While it is anticipated that most transactions will be completed in a short period of time, in no event
will the time needed to process a transaction be deemed to be less than 14 days. The processing
date of a transaction shall be binding for all purposes under the plan and considered the applicable
valuation date for any transaction.
Direct Rollovers
Certain benefits which are payable to you may be paid directly to another retirement plan or IRA.
Your plan administrator will give you more specific information about this option when it applies.
Rollovers From Other Plans
Under certain circumstances, you may rollover an amount from another plan to this plan. The amount
comes from contributions made because of your past participation in that other plan. This is a rollover
contribution and it becomes a part of your vested account.
The rollover contribution may come from:
• other qualified plans (including after-tax employee contributions and any portion of a designated
Roth account)
12
• tax sheltered annuity plans (including after-tax employee contributions and any portion of a
designated Roth account)
• governmental 457 plans
• traditional IRAs if the amounts would be induded in gross income
Rollover contributions must meet Federal rules so ask your plan administrator if you are interested in
knowing more about them. You decide how to use the investment options for your rollover
contributions.
Past Employee Contributions
After-tax voluntary contributions could be made before January 1, 2011. The part of your vested
account resulting from these contributions is always yours. You decide how to use the investment
options for your own contributions.
You may make two withdrawals during any one-year period from this part of your vested account.
A charge or restriction might apply for some investment options if you make a withdrawal, so talk
with the plan administrator first.
Changing or Stopping the Plan
The plan can be changed at any time. We will notify you of any changes that affect your benefits.
An earlier version of the plan may continue to apply in certain situations. For example, participants
who stop working for us have their eligibility for benefits determined under the version in effect when
they stopped working.
The plan can be terminated (stopped). If the plan is terminated, your account will be 100% vested
and nonforfeitable. Your account will be held under the plan and continue to be credited with
investment earnings until it is used to provide benefits according to the terms of the plan.
Military Service
You may be entitled to certain benefits under the Uniformed Services Employment and
Reemployment Rights Act of 1994. The benefits you are entitled to will be determined at the time
you return to service based on your period of military service and whether or not you returned to
work during the period of time in which you have reemployment rights.
13
PART 7 FACTS ABOUT THE PLAN
Plan Sponsor
Weld County
915 10. Street
Greeley, CO 80632-0758
Plan Name
Weld County 401(k) Savings Plan
Type of Plan
Defined Contribution 401(k) Profit Sharing Plan
Plan Administrator
Weld County
915 10. Street
Greeley, CO 80632-0758
Telephone: (970)356-4000
Plan Year
January 1through December 31
Designated IRA for Automatic Rollovers
The IRA designated for automatic rollovers is an interest -bearing savings account. Fees and expenses
will be paid by you. For more information about the designated IRA and related fees, contact:
The Principal Client Contact Center
Principal Life Insurance Company
710 9th Street
Des Moines, IA 50309
Telephone: (800) 547-7754
Additional Information
For more information about Principal Financial Group® or your plan, you may access the Principal
website at www.principal.com or call TeleTouch® at 1-800-547-7754. TeleTouch® is a special
service from Principal Financial Group®.
14
Hello