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Home  Money Purchase

Money Purchase Plan - Voluntary Employee Contributions

You may make voluntary employee contributions to the Money Purchase Pension Plan of 1% to 50% of your gross pay for each pay period through authorized payroll deductions.  A separate employee contribution account will be maintained for you.

You must notify your employer in writing through the Voluntary Employee Contributions Election Form to start making voluntary contributions, or to change the percentage rate of your contributions, or to discontinue your contributions.

Your voluntary contributions are not tax deductible, they are made with "after tax" dollars.  The earnings that accumulate on your voluntary contributions will be tax deferred - no taxes will be due until you withdraw the earnings.

When you make a withdrawal from your employee contribution account, you cannot elect to remove all of the contributions and leave only the earnings.  A portion of the total dollar amount you choose to withdraw will be voluntary contributions and the remaining part will be associated earnings.  Withdrawal of earnings is taxable income and subject to federal income tax withholding of 20%.  No federal income tax will be due on the voluntary contributions you withdraw. 

You may withdraw funds from your employee contribution account twice per calendar year.  The minimum amount that may be withdrawn is $200.

 

 
 

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