Asphalt Specialists, Inc. 401K Plan
All full time employees are eligible to enroll in our 401K plan the first of the month following ninety (90) days of employment. Employees are eligible to receive an employer contribution from ASI of a yearly maximum of $2,250.00. Employees can elect to contribute to their 401K a set amount or percentage of their earnings or salary weekly. The higher the set amount or percentage contributed weekly by the employee will determine the amount contributed by the employer (to the yearly maximum), and will determine the amount money available for each participant upon retirement. The employer contribution to each employee’s 401K is structured as follows.
Employer Contribution Structure
Employee Deferral |
ASI Match (Employer Contribution) |
1% |
1% |
2% |
1.5% |
3% |
2% |
4% |
2.5% |
5% |
3% |
6% |
3.5% |
7% |
4% |
8% |
4.5% |
9% |
5% |
10% |
5.5% |
The ASI Match or Employer Contribution is capped at 5.5% or $2,250 – whichever is less.
Examples of how the plan works:
Example #1:
- Employee makes $700.00 weekly.
- Employee defers 5% into 401K = $1.820.00 yearly.
- ASI (employer) matches 3% = $1,092.00 yearly.
Example #2:
- Employee makes $1,000.00 weekly.
- Employee defers $8% into 401K = $4,160.00 yearly.
- ASI (employer) matches 4.5% = $2,340.00 – this is above the $2,250 cap, so ASI (employer) matches the maximum of $2,250.00.
This program of employer contribution was initially implemented to boost employee participation or enrollment in our 401K plan. The program has been a success – below are several key metrics indicating the growth of employee participation, plan assets, and employer matching contributions.
- ASI’s employee participation has increased by over 200% since 2003.
- ASI’s plan assets have increased by 73% since 2003.
- ASI’s matching contribution has increased by over 400% since 2003.
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