Dear Participant:
The Board of Trustees is pleased to announce a retirement
benefit available through the Equity-League 401(k) Trust Fund.
This new benefit was effective February 1, 2003, and applies to Actors
and Stage Managers employed under the terms of the LORT Contract. If
you are so employed, you may defer some of your salary into the
Equity-League 401(k) Plan (the "Plan"). You may defer up to 85% of your
salary, up to a maximum deferral of $4,675.00 per week. You may change
the percentage at any time. The percentage will be automatically
deducted from your weekly salary pursuant to your authorization. Please
note that a single deferral form will remain in effect for all shows
that an Actor performs under the same LORT Theatre Contract unless a
new form is submitted.
For the year 2004, the maximum amount of salary that you may defer from
ALL EMPLOYERS is $13,000.00. Note that if you are 50 or older, you are
eligible to defer an additional $3,000.00 for the year 2004.
Example:
Weekly salary: $786.00
Participant.s deferral: (10%) $ 78.60 -$ 78.60
Total deferrals made to 401(k) account: $ 78.60
Gross salary for federal income tax purposes: $707.40
Your voluntary salary deferral, automatically deducted from your weekly
salary by your employer, is treated as a pre-tax contribution made
before federal income taxes are calculated and deducted, thereby
reducing the amount of your current taxable income and lowering your
current tax liability. In addition, all interest earned is tax
deferred. You do not owe federal income tax until the money in your
account is withdrawn.
You are eligible to withdraw your account balance if:
- You reach Normal Retirement Age (59=),
- You have not been engaged in Covered Employment for 12 or
more consecutive months, or
- You are permanently and totally disabled (as defined by the
Plan).
If you die, your account will be paid as a death
benefit under the rules of the Plan.
Record keeping and investments are provided for the Plan through
MassMutual Retirement Services. MassMutual Retirement Services has an
excellent reputation in the retirement services industry and currently
manages more than $55 million in retirement plan assets. Working in
partnership with MassMutual Retirement Services, the Fund Office staff
will assist you during the entire 401(k)-benefit administration
process.
Through MassMutual, some of the features available from the Plan will
include:
- Twelve (13) investment options
- A toll-free number and an Internet site providing
participants with:
- Access to your account balance
- The ability to make changes to your investment options
- The ability to review investment performance
- Educational information on the Internet site regarding:
- Financial planning basics
- Plans for building an investment strategy
- A quarterly statement mailed to you, reporting:
- Account information
- Your personal rate of return
- Contributions made to your account segregating salary
deferral by each producer
The Plan charges an annual fee of $90.00. This
fee will be charged directly to your account on a monthly basis and
will be reflected on your quarterly statement.
A MassMutual customer service representative will be available through
the toll free number to answer your questions. You may also contact the
Fund Office at the above address and telephone numbers or through the
Fund.s website.
Very truly yours,
Board of Trustees
Equity-League 401(k) Trust Fund
