ecap basics

5/25/2018 ECAP Basics

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Macdill AFB1 June 2006

Employees Capital Accumulation Plan

This document is confidential and is intended solely for the use and

information of the client to whom it is addressed.


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1Filename/RPS Number

What is ECAP?

Employees Capital Accumulation PlanBooz Allen Hamiltons 401(k)

Tax-deferred retirement plan

Employee pre-tax contribution

Maximum of $15,000 in 2006

>50 catch-up provision = $5,000

Firm contribution

Booz Allen has historically contributed 10% of your compensation

ECAP operates on a calendar year basis

Typically, firm contributions will be made to your account in early February


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Participation in ECAPWho is Eligible?

Employee contribution Booz Allen employees are eligible to contribute as soon as practicable after

joining the firm.

Firm contribution

All regular employees, age 21 or older, working in the U.S. or U.S. citizens

working abroad that have completed one year. Enrollment is automatic after one year at Booz Allen Hamilton.

If I started in October 2005, when will my contributions start?

Contributions will be invested in the core investment funds of your choice


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Why Should I Contribute?

Social Security is not enough

Contributions reduce taxable income

Annual salary $50,000401(k) contribution 7,000Taxable income $43,000

Contributions reduce your tax bill!


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Why Should I Contribute?

Tax-deferred growth



Why Now?

Reaching your goal gets more costly as time goes by



Contributing To ECAP

Any percentage of your base salary up to the maximum annual IRS limit ($15,000)

unless you are Highly Compensated Employee (HCE) as defined by the IRS ($100,000 for 2006)

HCEs are limited to contribute the lesserof 10% of base salary or the annual IRS contribution limit

Contribution percentage changes will take effect with your next pay

You may make a lump sum contribution if you have not made any contributions during the Plan

Year or if you were hired during the Plan Year and wish to make up for lost time Lump sum contributions can be made only via payroll deductions from June or November pay;

Only one lump sum contribution election per year is allowed;

Lump sum tax deferred voluntary 401(k) contribution elections must be submitted in writing by June 1 or

November 1. Contact Helen Trgala via e-mail at [email protected]


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Catch-up Contributions

Employees who are age 50 or older are eligible to contribute an additional $5,000 above themaximum 401(k) amount allowed by ECAP and the Internal Revenue Service. In order to takeadvantage of this option, you must already be making normal 401(k) contributions from yourpay. Catch-up contribution elections carry over to the next year, unless a new election ismade.

Your election must be in a dollar format and keep in mind that the amount you elect is a perpayamount. For example, if you elect $4,000, $4,000 will be withheld from one pay; if youelect $334, this amount will be deducted from each pay until $4,000 is met.

Refer to of the ECAP Summary Plan Descriptionin the Formssection ofhttps://ecap.csplans.com/portal/PortalLogin.jspfor more information about Contributions
https://info.plan.csplans.com/default.asp?cl=BOOZALPE&pl=510001&page=formsforms&domain=ecap.csplans.com&plan=510001&jsessionid=76D82BF980CA297747A687ADD84214B4&act_type=P&s=2A85A111D159F0E030392615BA84B006&d=MCwCFA+OfUO3OF6llPgGed099OqxVz87AhRtcRHp87AmglVkoQbOXfDJUQWOZg==https://ecap.csplans.com/portal/PortalLogin.jsphttps://ecap.csplans.com/portal/PortalLogin.jsphttps://info.plan.csplans.com/default.asp?cl=BOOZALPE&pl=510001&page=formsforms&domain=ecap.csplans.com&plan=510001&jsessionid=76D82BF980CA297747A687ADD84214B4&act_type=P&s=2A85A111D159F0E030392615BA84B006&d=MCwCFA+OfUO3OF6llPgGed099OqxVz87AhRtcRHp87AmglVkoQbOXfDJUQWOZg==



Vesting In The Plan

Vesting = assuming full ownership of firm contributions

includes investment income associated with such contributions

If your employment terminates prior to age 60, you will be entitled to the vested portion of youremployer contributions

Vesting is determined by your Years of Service* and your age at the time your employmentterminates, as shown below:

Yrs of Service Vested Portion < Age 40 Vested Portion > Age 40



Distributions

Retirement Eligible upon reaching age 59

Mandatory upon reaching age 70

Distributions made prior to age 59 are subject to 10% penalty, unless

certain conditions are met

Loans against your 401(k) are immediately payable, with interest



Accessing Your Accounts

Account access requires SSN and PIN

PIN is assigned by CitiStreet and mailed toyour home of record

PIN reset is available if you have activatedthis feature beforehand

You can create an alternate username byclicking on "My Preferences"

Most plan transactions and informationrequests can be made through the website orby calling the ECAP Information Line at(888) 530-ECAP

A confirmation statement will be mailed to your

home address of record every time you make atransaction.

Irwin M. Fletcher



Investment Options

10 Core Funds

Stable Value Fund

Bond Fund

Balanced Fund

S&P 500 Stock Index Fund

U.S. Stock Fund

Russell 1000 Value Index Fund

Russell 1000 Growth Index Fund

Russell 2000 Stock Index Fund

EAFE Stock Index Fund

EuroPacific Growth Fund

Self-Directed Account Option

Minimum initial transfer = $1,000;

Minimum for subsequent transfers = $250

Maximum of 50% of your total ECAP account balance

Fund Information for S&P 500 Stock

Index Fund



Account Balances

Broken down by fund

Employee and firm contributions separated

Vested balance calculated



Questions?

Please feel free to provide feedback via e.mail

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