HomeParticipantsEmployersFinancial AdvisersInsurance AgentsAbout Us

  









Questions & Answers
   
   
  What are the contribution limits?
 
Pension Limits    
 
2017
2018
Elective Deferral
18,000.00
18,500.00
Catch Up 
(for participants age 50 & above)
6,000.00
6,000.00
Social Security Wage Base
127,200.00
128,700.00
Annual Compensation to be considered a
Highly Compensated Employee
120,000.00
120,000.00

  What is a Roth 401(k)?
What is a Regular 401(k) deferral?
What if I terminate employment?
Who do I contact if my account balance was
  automatically rolled over?
What is vesting?
What is a Year of Service?
Can I withdraw money on account of a financial hardship?
Can I take a loan from the Plan?


What is a Roth 401(k)?
If you make a Roth 401(k) deferral, you must pay current income tax on the deferral contribution. When the Plan distributes the deferrals and earnings and as long as the money has been in the Plan for a minimum of 5 years and you are age 59 1/2, the earnings and contributions are distributed tax free.

What is a Regular 401(k) deferral?
If you make a Regular 401(k) deferral, then your taxable income is reduced by the deferral contribution so you pay less in federal income taxes. When the Plan distributes the deferrals and earnings, you will pay the taxes on the deferrals and earnings. What are my tax consequences when I receive a distribution from the plan?

What if I terminate employment?
Upon termination of your employment you can request a distribution from the Plan. The forms are available at www.benxco.com/participants/pension plans/forms If your vested balance is greater than $5,000 and you do not elect a cash distribution or rollover, your benefit will remain invested under the Plan.

If your vested balance is $5,000 or less and you do not elect to receive a cash distribution or rollover, your benefit will be automatically rolled over into an IRA. Upon rollover to the IRA, your benefit will be invested in investment vehicles designed to preserve principal, such as a Money Market, Certificate of Deposit, or Stable Value Fund. You may modify the investment choices under the IRA or transfer your benefit from the IRA at any time by contacting the IRA provider.

You should refer to the special tax notice for further information regarding the taxation of distributions received from qualified plans. This notice is included with the Distribution Election and can be found at www.benxco.com/participants/pension plans/forms

Who do I contact if my account balance was automatically rolled over?
PenChecks Inc
8580 La Mesa Boulevard, Ste 100
La Mesa, CA 91941
800-541-3938

What is vesting?
Vesting is the account balance you are entitled to. Each plan may have a different vesting schedule. Your vested percentage is determined based on years of service. You are always 100% vested in amounts attributable to the following contributions:
  • Salary Deferrals (including Roth)
  • Rollover Contributions
  • Safe Harbor Contributions
  • Qualified Non-Elective or Qualified Matching Contributions

What is a Year of Service?
To earn a year of service, you must work at least 1,000 hours during a plan year. Special rules may apply to military service personnel. Please contact your plan administrator to determine if this applies to you.

Can I withdraw money on account of a financial hardship?
Yes, but only if your plan allows. Taking a hardship distribution will reduce the value of the benefits you will receive at retirement. The following requirements will apply:
  • Certain contributions, such as earnings on salary deferrals and contributions, as well as earnings from employer safe harbor contributions are not eligible for withdrawal on event of a hardship. Other contributions may also be limited by your Plan. Please consult with your Plan Administrator.
  • You may only withdraw the amount needed to meet your financial emergency
  • You must exhaust all other sources of funds, including Plan loans, before receiving a hardship distribution
  • The Trustees are obligated to ask personal questions in order to determine eligibility
  • Salary deferrals to any 401(k) account must be suspended for at least six (6) months
  • Be advised of the tax implications, such as the 10% early withdrawal penalty, state and federal taxes. Please consult with appropriate tax advisors

To receive a distribution on account of hardship, you must provide the Plan Administrator with sufficient documentation to demonstrate one of the following hardship events:
  • Unpaid medical expenses for yourself, spouse or dependent
  • Payment of tuition and related fees for yourself or a qualified dependent
  • Purchase of principal residence for participant (does not include mortgage payments)
  • To prevent eviction or foreclosure on your mortgage related to your principal residence
  • Payment for funeral or burial expenses for your deceased parent, spouse, child or dependent
  • Payments of expenses to repair damages due to a natural disaster

If you need to request a hardship distribution, the application is available at www.benxco.com/participants /pension plans/forms

These forms should be completed and returned to your Plan Administrator.

Can I take a loan from the Plan?
Yes, but only if your plan allows. Please contact your Plan Administrator to determine if your Plan allows for loans. Plans may provide different limits and rules.
  • A Participant may borrow up to 1/2 of their vested interest up to $50,000 (whichever is less)
  • A Participant may have one (1) loan outstanding at any time
  • You will be charged a reasonable rate of interest
  • Repayments are automatically deducted from you paycheck

If you need a loan, the application is available at www.benxco.com/participants/pension plans/forms

These forms should be completed and returned to your Plan Administrator