No matter how close or far away retirement may be, there’s no better way to ensure you’re financially prepared than by actively participating in the Profit Sharing and 401(k) Plan. Some of the advantages the plan offers include
- Building a substantial account balance with pre-tax contributions made through easy payroll deductions
- Enjoying immediate tax savings and receiving matching contributions from the Nestlé Waters North America on a portion of what you save
- Benefiting from potential annual additions to your account from Profit Sharing contributions
- Directing the investment of all the money in your account in any of fourteen investment funds
- Taking advantage of the compounding effect of your account over time
The following sections provide an overview of the plans that we offer our employees. We provide all new employees a full set of official documents regarding the rules, regulations, and eligibility requirements for these plans.
Plan Participation
All full-time and part-time employees automatically participate in the Profit Sharing and 401(k) Plan for purposes of receiving Profit Sharing contributions, when made, after meeting the plan’s eligibility requirements. Newly hired employees are automatically enrolled in the 401(k) portion at a pre-tax contribution level.
Eligibility
You are eligible to participate in the Profit Sharing and 401(k) Plan provided you are at least 18 years old and are:
- A regular full-time employee (scheduled for at least 40 hours a week)*
- A part-time employee who has completed at least six months of employment
* Note: For Profit Sharing eligibility, full-time employees must have at least three months of continuous employment with Nestlé Waters North America.
Profit Sharing Contributions
Profit Sharing contributions may be made to the Profit Sharing and 401(k) Plan on behalf of all participants based on Nestlé Waters North America’s profitability. To receive a contribution for a year in which one is made, you must be an eligible plan participant as of December 31 of the year for which the contribution is made. Your contribution will be equal to a percentage of your eligible earnings. Nestlé Waters North America’s contribution is based on net operating profit for a particular year before interest charges and state and Federal deductions.
401(k) Contributions
There are several ways you can contribute and grow retirement savings in the Profit Sharing and 401(k) Plans:
- Your own pre-tax contributions,
- Nestlé Waters North America’s matching contributions
- Tax-deferred investment earnings on total plan contributions
- Roll over contributions from another qualified plan*
- Additional “catch up” contributions*
* Under certain circumstances. Some conditions may apply for these contributions.
Your Contributions
The plan offers you a means to save and invest for the future by making pre-tax contributions (technically called a “salary deferral”) of up to 15% of your annual earnings (including regular base salary, eligible commissions, or overtime). Remember, when you make pre-tax contributions you reduce your taxable income by the amount you put in the plan and, as a result, reduce your income subject to Federal income taxes and, in some areas, states and local taxes as well.
Company Matching Contributions
For every dollar you contribute to the plan up to 6% of your annual earnings, Nestlé Waters North America adds a matching contribution.
Gaining a Right to Your Account Balance
As a plan participant, all amounts that you contribute to the Profit Sharing and 401(k) Plan always belong to you, as well as any investment earnings on these contributions. Over time you gain a right to contributions that Nestlé Waters North America adds to your account. This is known as "vesting."
Vesting
Unlike the contributions that you make to the plans, you earn a right to Profit Sharing and Matching contributions over time. This process of vesting is based on your years of vesting service and occurs over a period of five years. Each year of service (based on your hire date) entitles you to 20% of company contributions. After five full years you would be 100% vested in all company contributions to these plans.
Your Investment Choices
The Profit Sharing and 401(k) Plan offers fourteen different investment funds for you to select among, each with different growth and risk potential ranging from conservative to aggressive. Each plan participant receives a quarterly statement providing a summary of account activity.
Getting Money From Your Account While Actively Employed
Your Profit Sharing and 401(k) Plans are designed primarily as a means for you to prepare for financial security after your working years. As an active employee you may take money from your account either as a plan loan or a hardship withdrawal. Certain rules, restrictions, and tax implications apply to these types of withdrawals.
Receiving Distributions From Your Account
If you leave Nestlé Waters for any reason, you will be able to take the vested portion of your Profit Sharing and 401(k) Plan account as a distribution or as a roll over into another qualified plan.
Taxes and Your Account
The Profit Sharing and 401(k) Plan provides many tax advantages to those who actively participate in the plan, as well as rules and regulations surrounding taxation of distributions from the plan.
Harlie
Retail Customer Service Center Coordinator