Employee 401(k) contributions
Eligibility requirements:
- Complete 1 month of service.
- Enter the plan on the first day of the month concurrent with or immediately following the satisfaction of the above eligibility requirements.
Contributions:
Participants may elect to defer a portion of their compensation through a salary reduction agreement not to exceed the maximum IRS limit, which is $23,000 in 2024. An individual 50 or older may defer an additional $7,500 in 2024.
- Traditional pre-tax and Roth after-tax contributions are permitted.
- Participants are allowed to make deferral changes to be effective the first of the next month.
- Participants not electing a deferral percentage will automatically defer 4% of compensation following the satisfaction of the above eligibility requirements. An automatic savings increase of 1% per year will automatically occur until 6% deferral is reached after two years unless the participant elects otherwise.
Employer match contributions
Eligibility requirements:
- Enter the plan on the first of the month concurrent with or immediately following the satisfaction of the above eligibility requirements.
Contributions:
- The matching contribution is $0.25 per $1 on the first 6% of participant’s deferred compensation.
Employer profit-sharing contributions
Eligibility requirements:
- Attain age 20.
- Complete 1 year of service.
- Enter the plan on the first day of the month immediately following the satisfaction of the above eligibility requirements.
- Employed on December 31 and work 1,000 hours during the plan year.
- Profit sharing contributions are discretionary and based on the employer's profitability.
- Historically, the profit-sharing contribution has been 6% of compensation.
Additional plan provisions
Vesting schedule:
- Employee 401(k) contributions and rollover dollars are always 100% vested.
- Employer matching contributions are vested according to the following schedule: 1 Year, 33%; 2 Years, 67%; 3 Years, 100%.
- One year of vested service for Employer Match & Profit Sharing is credited when the participant works 1,000 hours in the Plan Year.
- Employer profit sharing contributions are vested according to the following schedule:
| 1 Year | 2 Years | 3 Years | 4 Years | 5 Years |
| 20% | 40% | 60% | 80% | 100% |
Investments:
- Participants may direct their employee 401(k), employer Match, and employer Profit Sharing contributions among a variety of mutual funds.
- Matching and profit-sharing contributions will be professionally managed by Union Bank & Trust in a diversified portfolio of stocks and bonds if the participant does not self-direct to a variety of mutual fund options.
- Participants who are enrolled and have not elected an investment for their own 401(k) contributions will be invested in a default lifecycle fund.
Retirement age:
- Normal retirement age is 65.
Distributions:
- Separation from service.
- Death or disability.
- Financial hardship as defined by the IRS.
- In-service distribution allowed at age 59 ½.
Rollovers:
- Employees may roll over account balances from eligible employer-sponsored retirement plans or Traditional IRAs into the Union Bank Retirement plan.
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This guide is intended to be a general description of the Benefits Program offered by Union Bank & Trust. It is not intended to be a summary plan description (SPD). If there are differences between this guide and the SPD or plan document, the terms of the SPD and plan document should be considered definitive. Union Bank & Trust and any successors reserve the right to change, amend, terminate, or modify the provisions of these plans and programs with or without advance notice. The description of the program, the plan itself, or participation in the plan is not an employment contract or any type of employment guarantee and should not be construed as such. Nothing in this guide is intended to provide medical, tax or legal advice.
