Huntington Ingalls Industries Savings Plan ... - Benefits Connect

Huntington Ingalls Industries
Savings Plan SPD
March 2011
Example: Marie
• Earns $120,000 a year
• Is 55 years old
• Elects to contribute 25% of her eligible compensation (15% as tax-deferred
contributions and 10% as Roth 401(k) contributions)
• Participates in sub-plan A and, based on her contributions, is eligible to receive a 4%
company matching contribution ($4,800).
Here’s what happens to Marie’s account throughout the year:
• Marie reaches the $22,000 IRS tax-deferred and Roth 401(k) contribution limit for
employees age 50 or older ($16,500 plus $5,500 in catch-up contributions) in
September.
• Marie’s contributions automatically switch to after-tax contributions. She continues to
receive company matching contributions on her after-tax contributions until the end
of December.
• For the following plan year, Marie will have the option of:
Taking no action. Her contributions will switch back to tax-deferred and Roth
401(k).
Take action by making an affirmative election to continue after-tax deductions.
Consult your tax advisor to make the most of your tax-deferred, Roth 401(k) and
company matching contributions. Keep in mind that you must contribute to the Plan each
pay period to receive the maximum company matching contributions for the year. For
example, if you participate in sub-plan A, you must contribute at least 8% of
compensation each pay period to receive the maximum company matching contribution
of 4% of compensation.
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