LLNS offers employees the opportunity to enroll in a tax-deferred 401(k) plan to supplement the lifetime annuity benefit. [The Tax-Deferred 401(k) Plan is described under Section 401(k) of the Internal Revenue Code.] A future benefit from this plan is based on participants' voluntary contributions plus earnings. An employer contribution is added for eligible TCP2 participants. Vesting is immediate for all contributions. Fidelity Investments is the designated administrator and record keeper of the 401(k) plan, and provides all account services. You may consider consulting a tax advisor or financial planner before enrolling.
The general contribution limit in 2021 for 401(k) plans will remain at $19,500 (combined for pre-tax and Roth). Employees age 50 or older as of December 31, 2021 are able to contribute an extra $6,500 by making a separate catch-up contribution election.
The maximum annual total 401(k) contribution in 2021, including all employee contributions and employer matching and service based contributions (excluding catch-up contributions) will increase to $58,000 in 2021 (an increase of $1,000 from 2020).
The employee compensation that is eligible to be considered in calculating contributions to defined contribution plans (e.g., 401(k) plans), will increase to $290,000. This compensation limit also applies to the eligible compensation that can be recognized in determining Defined Benefit Pension plan benefits.