AMSEC Employees 401(k) Profit Sharing Plan - Benefits Connect

When you become a Participant in the Plan by electing to make Salary Deferral (401(k))contributions, a Deferral Account is established for you. Your Salary Deferral contributions and,if applicable, your catch-up contributions for each calendar year are put in your Deferral Account.2. Catch-Up Contribution. If you will be age 50 or older by the end of the year, you can make anadditional $5,500 “catch-up” contribution for 2011 on a pre-tax basis. You can make the fullcatch-up contribution in a given year if you are at least age 50 and you will contribute the IRS pretaxdollar maximum ($16,500 in 2011).Calendar YearDollar Limit on YourSalary DeferralsDollar Limit “Catch-Up” Contributions atAge 50+Total Dollar Limit atAge 50+2011 $16,500 $5,500 $22,0003. Automatic Payroll Deduction Increase. To increase your pre-tax savings rate automaticallyeach year, sign up for the automatic payroll deduction increase. Just choose the amount of yourincrease (one to three percentage points) and the month you want it to occur. Your increasescontinue until you reach the Plan’s limit of 75% or the IRS limit.A separate Company Contribution Account will record your interest in any Company matching, profitsharing,or additional contributions, as described below.4. Company Matching Contributions. AMSEC matches 45% of what you contribute, to amaximum of $2,000 per year to your Plan. The Company’s contribution is made each pay period.These contributions are invested according to your contribution allocations or the funds youchoose. They do not have to match your current allocations.5. Company Profit-Sharing Contribution. AMSEC may, but is not obligated to, make a profitsharingcontribution. Any profit-sharing contributions are calculated separately for AMSECemployees and the employees of any Contributing Employers. Each eligible AMSEC employeewill receive a percentage of the profit-sharing contribution determined by dividing his or hersalary by the combined salary of all eligible AMSEC participants. Any profit-sharingcontributions are allocated on the last day of the Plan Year to those eligible AMSEC employeeswho were performing duties as wage-earning employees on the last day of the Plan Year and toeligible AMSEC employees who died, retired, or became disabled during such Plan Year.6. Company Discretionary Contributions. If necessary to satisfy applicable legal requirements,AMSEC may make an additional annual contribution to the Plan, which will be allocated as anequal dollar amount to all eligible “non-highly compensated” employees who were employedduring the applicable year. Non-highly compensated generally means that the employee’s annualcompensation is not in excess of a limit determined by the IRS for the previous year, adjustedperiodically for the cost of living.7. Rollover Contributions. Under rules prescribed by the Committee, eligible employees maymake rollover contributions of amounts distributed to them from qualifying retirement plans ofprior employers (including certain plans of governmental and non-profit employers). In addition,March 2011 5 AMSEC SPD