Page 5 - American Century Retirement Plan Enrollment Guide

Contributions: You may elect to contribute up to 80% of your eligible compensation, subject to annual IRS limits, on a pre-tax, Roth 401(k) and/or after-tax* basis. Please review the chart below to help you understand how pretax and Roth 401(k) contributions compare to after-tax contributions. You will not receive the employer matching contribution on after-tax contributions. You should contribute a total of at least 5% in pre-tax and/or Roth 401(k) contributions to the Plan each year to receive the full employer match. In addition, you can make catch-up contributions if you are 50 or over during the calendar year. You can change your contribution rate at any time at workplace.schwab.com.
Pre-tax 401(k)
Yes
Roth 401(k)
Yes
After-tax
Is this contribution type eligible for the company match?3
No
Is my contribution taxable in the year contributed?
No
Yes
Yes
Is my contribution taxed when I take a distribution?
Yes
No
No
Are any earnings on my contributions taxed when I take a distribution?
Yes
No, if certain conditions are met 4
Yes
What is the Plan’s contribution limit?
80% of eligible pay
80% of eligible pay
80% of eligible pay
What is the IRS contribution limit?
$19,500 in 2021; $26,000 if you are age 50 or older by year-end (combined with Roth 401(k) contributions)
$19,500 in 2021; $26,000 if you are age 50 or older
by year-end (combined with pre-tax 401(k) contributions)
$58,000 in 2021; $64,500 if you are age 50 or older by year-end (combined with pre- tax 401(k), Roth 401(k), and employer contributions)
*After-tax contributions allow you to save beyond the annual employee contribution limit for pre-tax and Roth 401(k) contributions, as they do not count toward this limit. After-tax contributions do count toward an overall annual contribution limit, which is the lesser of $58,000 or 100% of your eligible compensation (combined with pre-tax, Roth 401(k) and employer contributions).
Automatic Savings Increase: Annually, your contribution rates are automatically increased by 1% if you are contributing between 5% and 14% or increased to 5% if you are contributing below 5%, unless you opt out of the automatic increase during the annual window.
Investments: You can choose from an array of investments to fit your own investment approach, including mutual funds, collective investment trusts and a self-directed brokerage account.
Rollovers: If you have assets in a qualified retirement plan with a previous employer, there may be several options available to help you manage an additional retirement account. For more information about
your options, contact Schwab Retirement Plan Services, Inc. at 1-800-724-7526 or go to workplace.schwab.com.
Company Retirement Contributions
The company’s retirement contributions consist of an employer matching contribution and a discretionary contribution. You have the potential to receive up to 15% of eligible pay in total retirement contributions if our company ranks in the top three of the 18-company publicly traded peer group and you are contributing at least 5% to the Plan.
American Century Retirement Plan | 3