Presentation on theme: "Agenda TODAY WE WILL COVER:"— Presentation transcript:
1 K2 Solutions, Inc. ESOP & 401(k) Plan Julie Isom Swerdlin & Company December 12, 2012
2 Agenda TODAY WE WILL COVER: Introduce Swerdlin and learn ‘Who Is Swerdlin & Company’?An overview of K2 Solutions retirement plan.What is Daypak.net and how do I use it?Questions?
3 Overview of Swerdlin Trustees Hired Swerdlin Swerdlin selected Pension Actuaries and Employee Benefits ConsultantsCan handle combined recordkeeping for 401(k) deferral and employer stock32 years in business with 67 employeesIndependent of plan assetsEstablished service standardsAdminister 600+ plans in 36 statesAdminister over 100 ESOPs
4 Overview of Swerdlin We are the administrator of the new KSOP Major role as “Recordkeeper”Records account activityPerforms compliance testingProduces employee statementsPrepares governmental reporting
5 Overview of Benefits Plans K2 Solutions had 1 benefit plan401(k) Plan - funded by you, invested by you.Effective January 1, 2012, K2 Solutions has added an Employee Stock Ownership Plan – funded by K2 Solutions, invested by Trustees.Effective December 31, 2012, the two plans will be combined into one, K2 Solutions Employee Stock Ownership and 401(k) Plan.
6 Overview of Benefits Plans The plan is the responsibility of the Board of TrusteesActs in the best interest of participants (Fiduciary Duty)Funds employer company contributionsApproves annual valuation of stock after reviewing valuation company’s opinion
7 Overview of Benefits Plans 401(k) BasicsYou elect to contribute a portion of your salaryYou direct the investmentsBenefit to YouInvestment grows tax-freeTraditional 401(k) - You do not pay taxes on your contributions until you elect to receive a payoutRoth 401(k) – You are taxed on the contribution dollars but are not taxed when you receive a payout
8 Overview of Benefits Plans ESOP BasicsNo contribution is required from you in order to share in the ESOP contribution (Company pays 100%)An ESOP is the only type of qualified retirement plan that gives the employee an opportunity to share in company growthYou do not pay taxes on your ESOP account until you elect to receive a payoutYou get cash equal to the current value of your stock when you receive your distribution
12 Participant Help Your retirement account is easily accessible: 24 Hour access to the DayPak WebsiteBy Internet atIn house Participant Call Center available 8:00 am to 6:00 pm EST, Monday through FridaySpeak to a live representative: Call
13 Participant HelpYou have the ability to do the following with both options:Obtain your current account balanceChange your PINReview current investment electionsChange your current investment electionsTransfer existing 401(k) account balancesModel or review plan loansReview 401(k) fund performance