Effective October 1, 2017, the company matching contribution will be increased from 40% of each dollar of deferral to 50% of each dollar of deferral. You may change the amount of your deferral as of the first day of any calendar quarter.
lf you are already eligible to participate in the plan (age 18 and 6 months of service), you may start, stop, increase or decrease your deferral rate as of October 1,2O17, or the first day of any calendar quarter.
Salary Deferral limits for 2O17 are 100% of compensation or $18,000.00, whichever is less. lt is on a “pay-as-you-go” basis through payroll deduction. You may elect to defer a percentage of your compensation or a fixed dollar amount. You may change your deferral as of the first day of each CALENDAR QUARTER. Contact your office administrator for Salary Deferral Forms.
lf you are age 50 by the end of the year, and you make the maximum deferral of $18,000.00, you are eligible to make a catch-up contribution of $6,000.00 for 2O17. This must also be contributed through payroll deduction. You may elect to defer a percentage of your compensation or a fixed dollar amount. You may change your deferral as of the first day of each CALENDAR QUARTER. Contact your office administrator for Salary Deferral Forms.
You may elect to defer a portion of any bonus by completing Option c on the Elective Deferral form. lf you do not complete Option c, deferrals will NOT be withheld from any bonus compensation.
You are always 1OO% vested in your salary deferral contributions. The matching contribution and the Profit Sharing contribution are subject to a vesting schedule as follows: Less than 2 years O%, 2 years 2O%; 3 years 4O%; 4 years 60%; 5 years 8O%; 6 years 100%.
A deferral form is attached for your use if you wish to change your deferral amount.
lf you have additional questions, please do not hesitate to contact your office administrator, or Barbara Bethell at 479-788-4345, 800-364-1827, BarbaraBethell@fnbfs.com or Lee Ann Neidecker at 479-788-4346, LeeannNeidecker@fnbfs.com or 1-800-364-1827 in the Trust Department at First National Bank.