2 Elective Deferrals An Elective Deferral is a tec h nical name for the process where you agree to make a Plan contribution which comes out of your compensation . As described in Article II, an Elective Deferral is taxed currently only for Social Security purposes. At a later date, when you actually receive the money you pay income taxes, based on whatever your tax bracket is at the time and the law of the state where you permanently reside at the time . Saving for your retirement should be a key part of most everyone’s financial plan, even (or especially) if you are very young. There is no minimum age or waiting period if you want to save from your own compensation. Matching Contribution s Full Participants are immediately eligi ble for Matching Contribution s. If first hired on or after June 1, 2022, Matching Contribution s may not start until after the Entry D ate in which you are at least age 21. Entry Dates are January 1 and July 1 and deferrals prior to that Entry Date are not matched. Limited Participants will generally not be eligible for Matching Contribution s except for Plan Years when they satisfy the special service conditions described at the end of this Article I II . If they do qualify, the age 21 rule described above also applies if first hired on or after June 1, 2022. Nonelective Contribution s Full Participants are immediately eligible for Employer Nonelective Contribution s. If first hired on or after June 1, 2022, Nonelective Contribution s may not start until after the Entry Date in which you are at least age 21. Entry Dates are January 1 and July 1 and compensation prior to that Entry Date is not credited . Limited Particip ants will generally not be eligible for Nonelective Contribution s except for Plan Years when they satisfy the special service conditions described at the end of this Article II I . If they do qualify, the age 21 rule described above also applies if first hired on or after June 1, 2022. Reclassified Employee s The Plan is only for Employees , not independent contractors or employees of temporary help agencies. If it is determined that your Employer erroneously classified you as a non - Employee and you should have been treated as an Employee, you are not entitled to participate in the Plan except for Elective Deferrals. Military Service. If you are a veteran and are reemployed under the Uniformed Services Employment and Reemployment Rights Act of 1994, you r qualified military service might be considered servi ce with the Employer. If you might be affected by this law, ask the Plan Administrator for further details. What happens if I'm a Participant, termina te employment and then I'm rehired? If you are no longer a Participant because of a termination of employment, and you are rehired, then you will be able to part icip ate in the Plan on the date on which you are rehired if you are otherwise eligible to participate in the Plan. ARTICLE II EMPLOYEE CONTRIBUTIONS What are elective deferrals and how do I contribute them to the Plan? Elective Deferrals. As a Participant under the Plan, you may elect to reduce your compensation by a specific percentage and have that amount con tributed to the Plan on a pre - tax basis as an elective deferral. Your taxable income is reduced by the elective deferral contribution so you pay less in federal income taxes (however, the amount you defer is still counted as compensation for purp oses of So cial Security taxes). Later, when the Plan distributes the elective deferrals and earnings, you will pay the taxes on those e lective deferrals and the earnings. Therefore, federal income taxes on the elective deferral contributions and on the earnings are only postponed. Eventually, you will have to pay taxes on these amounts. You will always be 100% vested in your elective deferrals (see the Article in this SPD entitled "Vesting"). Elective Deferral procedure. The amount you elect to defer will be deduc ted from your pay in accordance with a procedure established by the Plan Administrator. If you wish to defer, the procedure will require that you enter into a Salary Reduction Agreement. You may elect to defer a portion of your compensation payable on or after your Entry Date. Such election will become effective as soon as administratively feasible after it is received by the Plan Administrator. Your election will generally remain in effe ct until you modify or terminate it. Elective Deferral modifications. You may revoke or make modifications to your salary deferral election in accordance with procedures that the Employer provides. See the Plan Administrator for further information. Elec tive Deferral Limit. As a Participant, you may elect to defer a percentage of your compensation each year instead of receiving that amount in cash. Your total elective deferrals in any taxable year can not exceed a dollar limit which is set by law. The limi t for 2022 is $ 20,500 . After 2022 , the dollar limit may increase for cost - of - living adjustments. See the paragraph below on Annual dollar limit.