|401(k) Contribution Accelerator:
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|401(k) Employee Savings Plan:
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|401(k) Employer Match:
Employer match of 0% up to 0% of your salary.
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|Accelerated contributions could increase your retirement savings by $141,172.
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It is important to note that some employees are subject to another form of contribution limitations. Employees classified as 'Highly Compensated' may be subject to contribution limits based on their employer's overall participation. If you expect your salary to be $120,000 or more in 2015 or was $115,000 or more in 2014, you may need to contact your employer to see if these additional contribution limits apply to you. Participants in 403(b) and 457(b) plans may also be able to make additional special contributions.
It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that Separate Account investment funds and/or investment companies may charge.
While your plan may not have a deferral percentage limit, this calculator limits deferrals to 80% to account for FICA (Social Security and Medicare) taxes. Please note that your plan's contributions may be limited to less than 96% of your income. Check with your plan administrator for details. For 2015, the maximum contribution to a 401(k), 403(b) or 457 is $18,000 per year for individuals under 50 and $24,000 for individuals age 50 and over.
For example, let's assume the employer matches 50% of the employee's contributions up to 6% of their salary. The employee earns $100,000 per year and contributes 10%. The results would be:
Please read the definition for 'Employer maximum' for a detailed description of maximum employer matching contributions. It is also important to note employer contributions do not affect the maximum amount allowed to be contributed by an employee. Matching contributions can be subject to a vesting schedule. See your plan information for details.
The information provided is not intended to be legal, tax, or financial advice or recommendations for any specific individual, business, or circumstance. TowneBank cannot guarantee that it is accurate, up to date, or appropriate for your situation. Financial calculators are provided for illustrative purposes only. You are encouraged to consult with a qualified attorney or financial advisor to understand how the law applies to your particular circumstances or for financial information specific to your personal or business situation.