2 AESOP Auto Parts - Privileged & Confidential 4. Is there a default contribution amount? No – You get to choose the amount you contribute to the 401(k) plan. You can also change the amount you are contributing at any time. 5. What is the maximum annual contribution? The IRS sets annual limits for 401(k) plans. -In 2025 an employee can invest an amount up to $23,500 in their 401(k) account. -In 2025 any employees who are 50 years old or over can contribute an additional amount of $7,500 (catch-up). The total amount of $31,000 for 2025 if you are 50 years old or over. 6. How does a 401(k) contribution affect my paycheck? All 401(k) contributions are taken from your paycheck before taxes (pre-tax). Example 1: No 401(k) plan An employee who makes $18.00 an hour. (80 hours/paycheck x $18.00/hour = $1,440 gross pay) Without a 401(k) plan the employee will pay taxes on the entire $1,400. Example 2: 401(k) plan An employee who makes $18.00 an hour and contributes 5% to their 401(k) account. (80 hours/paycheck x $18.00/hour = $1,440 gross pay). ($1,440 gross pay x 5% = $72 contribution 401(k) account = ($1,440 gross pay - $72 401(k) contribution = $1,368. With a 401(k) plan the employee will pay taxes on $1,368 instead of $1,440. Employees who have a 401(k) contribution will lower their annual taxable income. 7. When is enrollment for the 401(k) plan? Enrollment for the 401(k) plan is quarterly. January 1st, April 1st, July 1st and October 1st. 8. How do I enroll in the 401(k) plan? Visit the empower website: https://participant.empower- retirement.com/participant/#/login You are also welcome to call Empower 1-800-338-4015 and they will help you enroll.