401(k) Overview
Dow Aero (“Company”) encourages participation in the Dow Aero, LLC 401(k) Profit Sharing Plan (“401(k) Plan”) to ensure a secure retirement for it’s employees. The Company has two 401(k) types to choose from including a Traditional and Roth offering. The main difference between a these 401(k) types relates to the taxation of deferral and distributions, which are broken down a bit further below:
With a Traditional 401(k), the account holder:
Is not taxed at the time of the deferral; taxed at the time of withdraw.
Account earnings are taxed.
Deferral deducted from the individual’s federal income tax return.
With a Roth 401(k) the account holder is:
Taxed at the time of the deferral; not taxed at the time of retirement withdraw.
Account earnings not taxed.
Deferral is not deducted from the individual’s federal income tax return.
Select here if you still cannot decide on which 401(k) type is right for you >
Your Deferral and the Company’s Matching Contribution
You have the option to choose a deferral in the form of a percentage of your pay (most common) or a flat dollar amount. If a flat dollar amount is selected for your deferral for either the traditional 401k or Roth IRA plans, then your company matching will be calculated using a flat 80 hour work week to determine the conversion of the flat dollar amount into a percentage. Once that is calculated, then the matching contributions below are applied.
Vesting
QACA Safe Harbor Contributions
Profit Sharing
* Vesting percentage is based on consecutive eligible years of service with the Company.
Automatic Enrollment
Upon obtaining eligibility to participate in the 401(k) Plan, which may be achieved after completing six (6) months of continuous qualifying year of service with the Company, eligible employees will be automatically enrolled. Automatic enrollment begins with a six-percent (6%) pre-taxed deferral that is deducted from an enrolled employees payroll and contributed into the 401(k) Plan. The Company will provide matching contributions in accordance with the 401(k) Plan’s provisions identified above.
Employees should be aware that Internal Revenue Service (IRS) limits on annual deferrals apply and that contributions to this 401(k) Plan, when combined with other plans in which the employee may participate individually, may not exceed IRS limits.
The Company’s Human Resources (“HR”) department will provide additional information as employees approach automatic enrollment. Employees may waive automatic enrollment prior to the arrival of their enrollment date.
Permissible Withdraw
In the event an employee wishes to discontinue their participation for the 401(k) Plan within thirty (30) days of automatic enrollment, they may request a penalty-free, permissible withdraw. This type of withdraw shall result in employees being able to have their market-valued retirement funds returned to them without the federal early withdraw penalty being applied.
After thirty (30) days of participation in the 401(k) plan, employees will not be able to request a rollover or withdraw of their full market-valued retirement funds until their eligible employment with the Company has ended.
Contribution Limits
The Internal Revenue Service (IRS) sets the annual maximum contribution limit employees can make during any 401(k) Plan year. These limits are:
$23,000 for 2024.
Individuals over the age of fifty (50) can make a catch-up contribution of an additional $7,500.
Member Account
Employees participating in 401(k) are highly recommended to create an account with Capital Group upon receiving a notice via email ahead of their eligibility. This site uniquely provides online access to:
Administer 401(k) deferral rate;
Request a loan or rollover;
Request individualized financial advising support (fees apply); and
View statements, along with supporting documentation.
For employees that have created an account with Capital Group/American Funds, they can login here. Remember to add this webpage to favorites list for easier access in the future. Eligible participants can also administer their Capital Group accounts using the mobile app (American Funds PlanPremier 401k) for iOS or Android devices.
Loans
The Company‘s 401(k) Plan allows for a loan to be requested during difficult financial situations or for large purchases by qualifying participants.
Eligible employees can only have up to one (2) active loan on their account, which must be paid back in-full with interest. Any approved loan shall be paid in accordance with a subscriber’s requested and confirmed schedule, without the option for early payoff unless separating from the Company.
In the event of separation where a remaining loan balance exist, the Company shall first attempt to pay off the loan balance up to $1,000 via a payroll deduction. Any remaining amount not covered by payroll shall be paid back with funds from the employee’s 401(k) account.
Hardship Distribution
The Company’s 401(k) includes early withdraw capabilities when an employee is experiencing an immediate and heavy financial need. Employees may receive a hardship distribution only if determination is made of when lacking other available resources (e.g., banks, financial aid, family, etc.). The following are the only financial needs considered immediate and heavy:
Expenses incurred or necessary for medical care, described in U.S. Code section 213(d), for you or your spouse, children, or dependents;
The purchase (excluding mortgage payments) of a principal residence for the Participant;
Payment of tuition and related educational fees for the next 12 (twelve) months of post-secondary education for you or your spouse, children or dependents;
The need to prevent the eviction of you from your principal residence (or a foreclosure on the mortgage on your principal residence);
Payments for burial or funeral expenses for your deceased parent, spouse, children or dependents;
Expenses for the repair of damage to your principal residence that would qualify for the casualty deduction; or
Expenses incurred on account of a federally declared disaster.
To initiate a request for a hardship distribution, you must complete and submit both the:
Complete a request from your Capital Group account.
The Plan Administrator, may consult with Company representatives, the provider and third-party administrator, along with any other appropriate external sources (e.g., legal, financial, regulatory, etc.) prior to issuing a decision for the request.
Termination
Employee 401(k) deferrals and Company contributions end immediately upon occurrence of a termination event. Deductions shall be suspended on the employee’s final qualifying payroll.
Rollover
Select here for a guide on rolling over a previous 401(k) account >
Provider Contact Information
Capital Group 401(k)
1.800.204.3731 | Customer Service
americanfunds.retirementpartner.com | Web
Plan Details
Plan Name - Dow Aero Profit Sharing 401(k) Plan
Policy Number - 346018-01
Plan Provider - Capital Group 401(k)
Plan Documents
Disclaimer
Investing has inherent risks. Although Capital Group will make every reasonable effort to choose funds presumed to deliver the strongest performance, there are no certainties on success. For this reason Capital Group, nor the Company, shall be liable for incurred losses. The Company reserves the right to add and/or remove funding options/features. Participants with active shares in a fund(s) being removed shall have their shares automatically sold and reinvested into a current and/or new fund(s). The Company may also modify the Plan, including changing the provider or cancel the Plan at anytime.
Content provided above is maintained by the Company’s Human Resources (“HR”) department, in collaboration with knowledgeable third-parties. The Company takes reasonable efforts in ensuring details about the plan(s) above are accurate. However, the plan document shall govern in the event an inconsistency is discovered between this resource, or any other oral or written description of benefits, and a formal plan document; please notify the Company’s HR department immediately should a potential error be identified.