Wednesday, April 21, 2021

Frequently Asked 401(k) Questions


Q.

When do I become eligible for benefits?

A.

You automatically become a participant in the Plan on the day contributions are made on your behalf to the District 9 Plan pursuant to a Collective Bargaining Agreement or a Participation Agreement. You choose when you want to start making 401(k) contributions.

Q.

When can I start Participating in the Plan?

A.

Participants fund their own Plan accounts.  Each Participant for whom employer contributions are made to the District 9 Plan may elect to make 401(k) contributions. You may contribute any amount on a per hour basis, from $1.00 per hour to $10.00 per hour.  If you are age 50 or older (or you will be age 50 or older by the end of the calendar year), you may contribute up to $12.00 per hour.

Q.

What is a Plan Year?

A.

April 1st through March 31st . 

Q.

Do I need to do anything to enroll in the Plan?

A.

You can start anytime by written notice to your employer to have your 401(k) contributions withheld from your paycheck and contributed to the Plan.

Q.

When do I become vested?

A.

You are 100 percent vested at all times in all of your accounts, even if you stop working for a contributing employer.  Either you or your beneficiary will receive your full account balance determined at the date of distribution.