Retirement Plan (401k)

Our 401(k) benefit is one of the most tremendous benefits Dr. Davis and Dr. Pyle provide for us. Not only do we get to select between two different types of 401(k)s, we can also qualify for a benefit called, “Non-Elective Deferral.” AKA, free money. Let’s dive in to the logistics…

Types of Plans

We offer two types of 401(k) options for team members who are eligible:

  • Traditional 401(k)

  • Roth 401(k)

To learn the differences between the two plans, see this article.

Types of Contributions

There are two types of contributions that we will talk about in this article:

  • Personal Contributions – Contributions you personally make into your 401(k).

  • Practice Contributions – An additional contribution made the practice makes into your 401(k), averaging about 7.5% of your gross income (the amount of money you earn before anything is taken out for taxes or other deductions).

Eligibility

Personal Contributions
There are two requirements to become eligible to personally contribute to your 401(k):

  • You must average at least 30 hours per week

  • You have been here 12 months on either January 1 or July 1

For example, let’s say you average 36 hours per week and were hired on March 12, 2018. You will be eligible for our 401(k) benefit on July 1, 2019.

Practice Contributions
In addition to the requirements for Personal Contributions, there is one additional requirement to become eligible for Practice Contributions:

  • The U.S. Government doesn’t classify you as a “Highly-Compensated Employee”

Vesting

It’s important to know that the entire amount of the practice’s contributions into your 401(k) are not immediately “vested.” Said differently, some of the money that is set aside for you comes available in different increments.

Referencing the chart below, here’s an example. Let’s say you leave the company following your 3rd year of being eligible for the 401(k) plan. You will be 100% entitled to the Safe Harbor contributions that were made in your name and 60% entitled to the 401(k) Profit Sharing contributions that were made in your name.

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