Announcing New 401(K) Deferral Enhancement
Attention: All Associates
The Essex Portfolio L.P. 401(k) Plan is pleased to announce an enhancement on deferral contributions to your retirement plan. Effective October 1, 2017, participants will be able to designate a separate deferral amount for any bonus you may receive.
How does this change affect me?
Saving in your employer plan is one of the best ways to save for your retirement and the increased flexibility now allows you to save even more. With the new enhancement, you will have the opportunity to set a bonus deferral of any denomination and it will not affect your current biweekly salary deferral election.
How can I change my deferral limit?
Effective October 1, 2017, you have the convenience to elect a separate deferral amount that applies ONLY to your bonus. You can do that by completing the Bonus Deferral Agreement (PDF attachment below) and submitting this to the Benefits team 10 days prior to the bonus payment date.
What happens if I do nothing?
If you do not submit the Bonus Deferral Agreement, the contribution election on file with PNC Bank will automatically be deferred from any bonus payment. For example, if you regularly contribute 4% and do not submit a separate bonus form, you will have a 4% deferral from your bonus.
What are the IRS limits for 2017?
The IRS 402(g) deferral limit for 2017 is $18,000, which applies to all participants under the age of 50. An individual who has reached age 50 or older by the end of the calendar year, and who has already made the maximum allowable elective deferral to the plan for the year, may make an additional “catch-up” contribution. The “catch up” contribution limit for 2017 is $6,000.
Does this apply to quarterly on-site bonuses?
Yes, if you want to make a separate election for your quarterly bonus payment, please submit a new Bonus Deferral Agreement every quarter. Bonus Deferral Agreements must be received 10 days prior to the quarterly bonus payment. Remember, if you do not submit a form, the deferral amount on file with PNC Bank will be automatically be contributed from any bonus payment.
Questions?
If you have further questions, please email benefits@essex.com or contact Joline Kho, Sr. Benefits Analyst, at 650-655-7942.