Download Mascaro Company 401(k) Plan

American Management
Technologies, Inc.
401k Profit Sharing
Retirement Plan
Executive Benefit Plans, Inc. and
Transamerica Retirement Services
www.401kport.com/payroll/
Your Social Security Benefit
The Social Security
Administration will give
you a benefit estimate at
your request. Call (800)
772-1213 and ask for a
“Request for Earnings &
Benefit Estimate
Statement”. Fill out the
form and mail it back.
The Social Security
Administration will send
you a report (in three to
four weeks) that shows
your employment history
and an estimate of your
benefits.
WHAT IS A 401(k)?
• IRS regulations allowing for
employee income deferral
before income taxes are
withheld.
• An employee benefit.
• A vehicle available to
employees which provides for
long-term growth of retirement
income.
WHAT DOES IT
DO FOR ME?
• Accumulative savings for retirement.
• Current year income tax reduction.
• No tax on earnings as they grow.
• Future tax advantages when you
receive your income.
• Competitive investment yields with
Transamerica.
HOW DOES IT
WORK?
• You elect a deferral of your income in
the form of a percentage of pay (1%100%).
• Your company may match a
percentage of the salary you defer on
a discretionary basis.
• Your annual taxable income reported
to the IRS is reduced by your elected
deferral.
• Your deferred income is owned by you
and will accrue at a competitive current
rate of interest, tax-deferred, with
Transamerica.
AMT 401(k) Plan Highlights
1)
Plan Effective Date:
January 1, 2000
2)
Maximum Deferral:
100% of Salary to $14,000 in 2005
3)
Company Contribution:
Discretionary
4)
Eligibility Requirements:
Age 21 and 12 Months of Service
5)
Entry Dates:
1st Day of Each Month
6)
Change in Investment Mix:
Daily
7)
Normal Retirement Date:
Age 65
8)
Early Retirement Date:
Age 55 and 10 Years of Service
9)
Vesting of
-Elective Contributions:
-Employer Contributions:
Years of Service
Less than 2
2 but less than 3
3 but less than 4
4 but less than 5
5 but less than 6
6 or more
100% Immediate
Begins from Date of Hire
Vested Percentage
0%
20%
40%
60%
80%
100%
10) Death/Total Disability:
100% Vesting
11) Hardship Withdrawals:
of Your Vested Benefits
12) Loans:
Permitted with a Minimum of $1,000
13) 24-Hour Fund Performance Hotline: 800-401-8726
14) Transamerica Fund Performance: www.ta-retirement.com
15) Transamerica Voice Response Unit: 800-401-8726
16) AMT Employee Account Website: www.401kport.com/payroll
Does 401(k) Cut my Pay?
Assuming you are saving now
on an after tax basis; your net
take home pay will actually
increase. Here’s how:
Assumes a $20,000 Annual Salary
Without 401(k)
With 401(k)
Current Pay
$20,000
$20,000
401(k) Deferral (6%)
______
1,200
Taxable Income
$20,000
$18,800
4,000
3,760
$16,000
$15,040
960
_______
$15,040
$15,040
$
-0-
$ 240
Plus your 401(k) Savings
-0-
1,200
Plus Employer Match
-0-
0
Tax (20%)
Net Pay
Personal Savings
Net Take Home Pay
Tax Savings
TOTAL SAVINGS
$ 960
$ 1,440
The Benefit of Investing Early
Age
Annual
# of years
Total
Accumulative
Contribution
in plan
Contribution value @ 65
Participant A
20
$2,000
9
$18,000
$465,168
Participant B
30
$2,000
36
$72,000
$404,141
Part. A
Part. B
$0
$100,000 $200,000 $300,000 $400,000 $500,000
Acc. Value
Ttl. Contribution
Assumes an 8% Annual Rate of Return
How Should I Invest My Plan
Contributions?
That’s a good question! Especially when you consider the
difference just a few percentage points of additional investment
return can make on your accumulated balance, as this chart shows:
Investment of $100 per Month
Years
10
20
30
40
6%
$16,470
46,435
100,954
200,145
Assumed Investment Return
8%
10%
12%
18,417
59,295
150,030
351,428
20,655
76,570
227,933
637,428
23,234
99,915
352,991
1,188,242
The right answer for you depends on a number of factors in your
own personal situation. These include: How many years until you
need to liquidate your account? What other investments do you
have? What is your investment goal? What level of risk are you
willing to take?
Before you try to analyze your answers to these questions,
remember a basic theory of investing: over time, you should be
rewarded for taking greater risk. For example, despite its ups and
downs, over any ten year period in the last 70 years- the stock
market has outperformed any other investment category.
This is not to say that everyone should invest in the stock market.
Every individual is different and has different risk tolerance levels.
One way to lower your risk but still participate in the market is to
diversify your investments... the old “don’t put your eggs in one
basket” theory. With this strategy, even if one type of investment
does poorly, the other types are likely to do better.
Asset Classifications
 CASH
Investing money in very short term
securities such as T-Bills
 BONDS
Lending Money to Governments or
Corporations
 STOCKS
Owning a piece of a company
Types of Risk
• Market Risk
-Short Term
-Risk of losing money due
to market fluctuations
• Inflation Risk
-Long Term
-Risk that your investments
won’t earn enough to maintain
purchasing power
Risk Classifications
Examples of Three Investment Strategies
Conservative
5% Cash
55% Bonds
40% Stocks
Moderate
5% Cash
30% Bonds
65% Stocks
Aggressive
15% Bonds
85% Stocks
Whatever strategy is right for you, remember, you
have the flexibility to change it if your situation or
goals change. The keys to successful investing are
knowing your risk tolerance, planning a long-term
strategy and diversification.
Where Do You Fit In?
Your Investment
Options
A broad range of
investment funds!
Your Investment Options
Investment Funds Summary
Cash Equivalents
Transamerica Stable Value Account
Bond
Transamerica Bond Ret Acct
Hybrid
American Funds Balanced Inv Acct
Vanguard Target Retirement 2005 Ret Acct
Vanguard Target Retirement 2015 Ret Acct
Vanguard Target Retirement 2025 Ret Acct
Vanguard Target Retirement 2035 Ret Acct
Vanguard Target Retirement 2045 Ret Acct
Vanguard Target Retirement 2010 Ret Acct
Vanguard Target Retirement 2020 Ret Acct
Vanguard Target Retirement 2030 Ret Acct
Vanguard Target Retirement 2040 Ret Acct
Vanguard Target Retirement 2050 Ret Acct
Large/Mid Value Equity
Columbia Mid Cap Value Fund
Large/Mid Blend Equity
Transamerica Core Equity Ret Acct
Transamerica Partners Stock Index Ret Acct
Oppenheimer Main Street Fund
AIM Mid Cap Core Equity Fund
Large/Mid Growth Equity
Transamerica Aggressive Growth Fund
Transamerica Equity Fund
Transamerica Putnam Vista Fund
AIM Capital Appreciation Ret Acct
Small Company Equity
Fidelity Advisor Small Cap Fund
Transamerica SSgA Dow Jones Small Cap Value Fund
Global Equity
Transamerica Oppenheimer Global Fund
International Equity
TR Transamerica Templeton Foreign Fund
Examples of Three
Investment Strategies
Conservative
5% Cash
55% Bonds
40% Stocks
Moderate
5% Cash
30% Bonds
65% Stocks
Aggressive
15% Bonds
85% Stocks
Whatever strategy is right for you,
remember, you have the flexibility to
change it if your situation or goals
change. The keys to successful
investing are knowing your risk
tolerance, planning a long-term
strategy and diversification.
Assess Your
Financial Picture
• How Much Have I Saved?
• How Much Money Will I Need?
• Risk Tolerance
Market & Inflation Risk
• Time Horizon
How many years until I retire?
Your Game Plan
• Assess your Financial Picture
• Save Early on a Pre-tax Basis
• Save Regularly - Dollar Cost
Averaging
• Understand Basic Investment
Concepts
• Expect Years With Losses!
• Develop a Long Term Game Plan
• Review that Plan Periodically
Questions & Contacts
401k Participant Accounting Contact:
800-401-8726 Telephone VRU (voice response unit)
www.ta-retirement.com
AMT Benefits Administrator:
Tracie Ayers
180 AMT Tech Drive
Rocky mount, VA 24151
540-366-8229
[email protected]
AMT Primary Contact:
A.G. Nichols
180 AMT Tech Drive
Rocky mount, VA 24151
540-366-8229
Broker/Transamerica Contact:
Mark L. Shaffer RHU, REBC
Pension Specialist
Executive Benefit Plans, Inc.
800-622-2411
[email protected]
www.401kport.com/payroll/
Coordinating Your
Retirement Plan For
Your Future
www.401kport.com/payroll/