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401(k) faq
There are two types of Equity-League 401(k) plans: one type offers salary deferral only, while the other offers both salary and employer contributions. GUIDE TO 401(K) PLAN CONTRIBUTIONS
What is the maximum salary per week that may be used to calculate contributions? The maximum salary per week that may be used to calculate contributions is $7,500.00. Salary includes contractual salary, overtime, unused vacation, unused sick leave, and overscale expense payments and per diems. What is the producer's contribution to the 401(k) Plan while working under a Production Contract? The producer will contribute an amount equal to 3% of your weekly compensation up to a maximum contribution of $225.00 per week. This is based on the maximum weekly salary of $7,500.00 times the employer contribution of 3%. Can I defer or contribute part of my own salary into the Plan? For the 2012 plan year, if you are working under any Contract that allows for participation under the Plan, you may choose to defer up to 85% of your weekly salary up to a maximum of $6,375.00 per week. This is based on the maximum weekly salary of $7,500.00 times the maximum deferral of 85%. You may change these contributions at any time or you may choose not to defer any part of your salary. This contribution is called a Deferred Salary Contribution. The Internal Revenue Service (IRS) limits the amount of salary you can defer to this or any other plan on a tax-deferred basis. In 2012, the annual limit is $17,000. Note that if you are 50 or older you are eligible to defer an additional $5,500.00 for the year 2012. Can I defer or contribute to the 401(k) Plan from overscale per diem? Deferred Salary Contributions can only be made from taxable income. If you are being paid expenses you can only make deferrals from taxable overscale per diem.
What is the maximum contribution per year per employer? The Federal Government limits the maximum amount of annual compensation per employer that can be taken into account for determining contributions for a participant under a qualified plan. For the year 2012 this amount is $250,000.00. The maximum employer contribution for an actor/stage manager for the year 2012 is therefore $7,500.00 (3% of $250,000.00). What is the maximum amount of salary that I can defer to the 401(k) Plan per year? The Internal Revenue Service (IRS) limits the amount of salary you can defer to this or any other plan on a tax-deferred basis. In 2012, the annual limit is $17,000. Note that if you are 50 or older you are eligible to defer an additional $5,500.00 for the year 2012. What are the tax implications of contributing to the 401(k) Plan? Federal income taxes are deferred for all monies contributed to the 401(k) Plan, as well as the interest earned. State income taxes are also deferred with the exception of state income taxes for the State of Pennsylvania. Pennsylvania will deduct state income taxes prior to any deferrals to the 401(k) Plan. In addition, Medicare and Social Security taxes are not deferred. To find out how this will affect your personal finances you must contact your personal tax advisor.
Can I voluntarily contribute to the 401(k) Plan after taxes? No. You must be employed by any of the contracts that are eligible under the plan and all salary deferrals must be before taxes are taken out. Can I rollover into my Equity-League 401(k) Plan funds from another retirement plan? Yes. You may rollover funds from a qualified retirement plan into your 401(k) Plan. You may download the 'Rollover Statement' from this website or you may contact the Fund Office.
What are my investment options? MassMutual offers you 22 investment options: You can direct the investment of your contributions in increments of one percent of your portfolio to any or all of the investment funds available under the Plan. MassMutual currently offers you 22 investment options:
If the Fund Office does not have your date of birth on file, and you have not given investment instructions, your account will be invested in the Manning and Napier Target Income Series. If any portion of your Account Balance was defaulted in the Manning and Napier Target Income Funds, you may always direct future contributions to any of the investment options available and transfer any amounts already defaulted. How can I change my investment options? MassMutual will provide you with a pin number which will enable you to change your investment options via a toll-free number or Internet site.
When am I eligible to withdraw or rollover my account balance? You are eligible to withdraw or rollover your account balance if:
Are Hardship Withdrawals available under the Plan? Yes. Effective January 1, 2005, Hardship Withdrawals have been added to the 401(k) plan. If you encounter a hardship situation that is based on the following conditions that have been defined by the IRS, and the Plan, then you will qualify for this withdrawal
To apply, please contact the 401(k) Department at the New York Office for an application.
How can I take the distribution of my account balance once I retire? You may receive your account balance in one lump sum or you may withdraw partial lump sums. If you elect a Normal Retirement or Disability distribution, you may also elect to receive a monthly annuity payment, or a fixed installment payment every month, calendar quarter, semi-annually, or annually. What happens to my 401(k) Plan if I die before collecting any part of it? If you die your account will be paid as a death benefit under the rules of the Plan.
If I am incorporated (employed as a corporation), can I still participate in the 401(k) Plan? Actors employed through corporations will be eligible for employer contributions, however, they will not be eligible for salary deferrals. The Plan has to pay for its administrative expenses, such as salaries, rent and postage. The Plan also has to pay a fee to its service provider, MassMutual. The Trustees make every effort to keep the costs of the Plan as low as possible.
Will I receive two quarterly statements from MassMutual if I am or was receiving employer and/or deferral contributions under a Production contract, and now only receiving deferral contributions while working under a contract that only permits deferral and not employer contributions - ex, Off-Broadway. etc.? No, you will receive one quarterly investment statement from MassMutual. All of your contributions will be consolidated into one account in order to invest these monies accordingly. If you have any questions regarding your 401(k) account, please contact the Retirement Services Department for assistance.
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©2001, 2002 Equity League Pension and Health Funds This site does not change or otherwise interpret the official Plan documents. To the extent that any of the information contained in this website is inconsistent with the official Plan documents (which, of course, includes the Trustees' rights to amend or modify the Plans at any time), the plan documents will govern in all cases. No official (other than the Trustees) has any authority to interpret the Plans, or other official Plan documents, or to make any promises to you about them. Terms of Use | Privacy Policy |