mke & associates, inc. 401(k) and profit sharing plan summary … · 2019-11-11 · foster...

F o s ter W ea l th , I n c . i s a Reg i s tered I n v es tm en t A d v i s o r

MKE & Associates, Inc. 401(k) and Profit Sharing Plan

Summary GuideSeptember 30, 2019

David Foster, CFP®, PrincipalTim Wood, Principal

mke401k.fosterandwood.com

Welcome to the MKE 401(k) Plan!

Congratulations on taking your first steps towards a secure life when you retire.

Foster & Wood bring 30 years of combined experience in managing retirement plans.

Because they do not allow commissions or any other conflicts of interest, you can confidently ask them questions or seek their advice without worrying about “what’s in it for them.”

Please feel free to contact David Foster or Tim Wood with any questions about investment strategy, filling out the forms, etc.

– David Foster| 971-266-0704 | [email protected]

– Tim Wood | 971-266-3134 | [email protected]

Welcome to our retirement plan and congratulations on taking this additional step in your career with us.

Plan Highlights – Basic Rules

• Contribution Maximums– Maximum 2019 annual contribution is $19,000, not to exceed 95% of pay– A catch-up contribution of $6,000 is available to those over 50 years old

• Eligibility– Age 21 or over and 1 year of service– Plan entry is 1st day of the month following your service requirement

• Rollovers of previous 401k plan balances are allowed at any time– Don’t need to wait for eligibility listed above– Call Foster & Wood if you have questions, and/or would like a copy of the

required form.

• Loans are available.– Minimum loan balance is $1,000 – Maximum loan balance is $50,000– Can’t exceed 50% of your vested balance

• In service distributions are available to employees who are at least 59 ½.

Plan Highlights - Investments• Mutual funds

– low cost, no commission.

– reviewed by your investment advisor and plan’s trustees

• Five professionally managed risk based portfolios are available

• You can choose your own mix of funds.

• Foster & Wood, our plan’s investment advisor, serves our plan as a fiduciary. They are available to you to answer any questions, help you decide on a long term investment strategy, or help you with any other investing or retirement question.

• Contact information:– Tim Wood | 971-266-3134 | [email protected]

– David Foster | 971-266-0704 | [email protected]

Plan Highlights – Roth 401(k)• Traditional 401(k)

– Tax deduction when you contribute– Reduces the tax you pay every pay period– In the future, withdrawals are taxed as income

• Roth 401(k)– No tax deduction when you contribute– Money comes out tax free

• Company contributions are never Roth. Matching and Employer Elective contributions are always counted as Traditional, even if your personal contributions are Roth contributions.

• You can make traditional contributions, Roth contributions, or a mixture of both, subject to the maximums.

Roth vs. Traditional IRA / 401(k)

25% Tax at Contribution

Traditional IRA / 401(k)

$4,000

Roth IRA / 401(k)

$4,000

$1,000 to taxes

Grows 10x over many years

$40,000

$30,000

25% Tax at Withdrawal

Money to spend after taxes

$30,000

$30,0000% Tax on Roth IRA / Roth 401(k)

$10,000 to taxes

Example: Your tax rate now vs. later is the most important consideration. If your tax rate now vs. later is the same, the options are similar

Company Contributions - Company

• MKE contributes 3% of your pay to the plan.

• This occurs with each paycheck!

• You don’t have to do anything to get these contributions.

• This is a great benefit to help employees on the way to retirement.

Vesting is different from Accessing Money

• Vested money you get to keep and move with you if/when

you leave or retire.

• Vested does NOT necessarily mean money you can access

while working.

• Money that is NOT vested is forfeited if/when you leave the

company.

Vesting Schedule(For Employer Elective Contributions)

1 Year 0%2 Years 20%3 Years 40%4 Years 60%5 Years 80%6 Years 100%

Years of Service

What is a QDIA?

• A Qualified Default Investment Alternative (QDIA) is the default fund for the plan and is only used when an employee does not make an affirmative investment selection. If you end up in the QDIA, you can change it any time.

• The QDIA for the MKE 401(k) is the Vanguard target date series. You will be matched up with a fund based on your expected retirement age.

Plan Website

• Website dedicated to your retirement plan

• mke401k.fosterandwood.com

• Login to your account, link to fosterandwood.com, and

see important announcements

• New contact information– David Foster | 971-266-0704 | [email protected]

– Tim Wood | 971-266-3134 | [email protected]

Conservative – 20% Stock / 80% Fixed Income

Performance DisclosureThe performance data quoted represents past performance and does not guarantee future results. The performance data quoted is net of mutual fund expense ratios but gross of any advisory or administrative fees charged to the plan. The investment return and principal value of an investment will fluctuate thus an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein.

Mutual Fund Weighted Avg. Net Expense Ratio: 0.13%

Vanguard S&P 500 Index Adm. 3%

DFA US Large Cap Value 4%

DFA US Small Cap 2%

DFA US Targeted Value 3%

DFA International Value 3%

DFA Int’l Small Cap Value 2%

DFA Real Estate Securities 2%

DFA Emerging Markets Core 1%

Vanguard Short Invmt Grd Adm. 17%

Vanguard Intrm Invmt Grd Adm. 17%

Vanguard Sht-Trm Bnd Ind Adm. 23%

Vanguard Int-Term Bnd Ind Adm. 23%

Mod. Conservative – 40% Stock / 60% Fixed Income





DFA US Small Cap 4%






Vanguard Shrt Invmt Grd Adm. 13%




Moderate – 60% Stock / 40% Fixed Income




DFA US Small Cap 6%











Mod. Aggressive – 80% Stock / 20% Fixed Income




DFA US Small Cap 9%











Aggressive – 100% Stocks



DFA US Small Cap 11%








Call or Email Anytime!

• Update your retirement plan

• Help with your contribution level

• Traditional vs. Roth contributions?

• Help picking your investment portfolio

• General investment questions

• Contact:– David Foster | 971-266-0704 | [email protected]– Tim Wood | 971-266-3134 | [email protected]

mke & associates, inc. 401(k) and profit sharing plan summary … · 2019-11-11 · foster...

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