You are eligible to enter the Plan on the January 1 or July 1 following the date you have attained age 21 and completed one (1) Year of Service. A Year of Service means the 12-month period commencing on the date you first perform an Hour of Service in which you are credited with 1,000 Hours of Service. In other words, you must work 1,000 hours from your start date to the first anniversary of your start date to be eligible. If you don’t earn 1,000 Hours of Service in the first year, subsequent 12-month periods begin on the anniversary the date you first performed an Hour of Service.

No. The Plan does not allow rollovers into the Plan.

Cline Williams contributes an amount equal to 10% of your gross compensation to the Plan for the portion of any Plan Year while you are a Participant. Your gross compensation is generally the total compensation reportable on your Form W-2 plus amounts withheld pursuant to the Firm’s cafeteria plan. A definition of Compensation is found in the Summary Plan Description in paragraph 8.

Yes. The Plan allows you to make pre-tax contributions and after-tax Roth contributions to the Plan. There is no minimum contribution. If you elect to have employee contributions made to the Plan, you must designate the amount on your Principal account page. Click on the Contributions tab.

Elective Deferral Agreements for Equity Partners are still managed by the firm.

You may change the amount of your employee contribution at any time. The change will become effective for the next payroll. It is helpful if you notify Lori Busch after making any change online.

Yes. The limit for 2022 is $20,500. If you are age 50 or older by the end of the Plan Year, you may contribute an additional $6,500 in 2022.

The amounts you contribute through payroll deduction are always 100% vested in the Plan. The following schedule sets forth the vested percentage for each Year of Service:

In addition, you become 100% vested when you reach age 65 while still employed by Cline Williams, or if you become disabled or die during your employment.

You may access your account online at www.principal.com.  You must have a login and password and enable 2 factor authentication. To obtain a login and password, follow the instructions at the website. If you have difficulties, contact 800-547-7754.

The following is a list of the investment funds. The funds provide differing risk and return characteristics:

Vanguard Value Index Admiral Fund
Vanguard 500 Index Admiral Fund
American Funds Growth Fund of America R6 Fund
T. Rowe Price/Brown Advisory
Vanguard Growth Index Admiral Fund
Victory Sycamore Established Value R6 Fund
BlackRock Mid-Cap Growth Equity K Fund
American Century Small Cap Value R6 Fund
Goldman Sachs Small Cap Value Inst Fund
Allspring Emerging Growth Institutional Fund
Vanguard Small Cap Growth Index Admiral Fund
American Funds EuroPacific Growth R6 Fund
Vanguard Balanced Index Admiral Fund
Vanguard Wellington Admiral Fund
Vanguard Target Retirement 2020 Fund
Vanguard Target Retirement 2030 Fund
Vanguard Target Retirement 2040 Fund
Vanguard Target Retirement 2050 Fund
Vanguard Target Retirement 2060 Fund
Galliard Stable Return PN Fund
PIMCO Total Return Instl Fund
Principal Global Investors Core Plus Bond Inst Fund
Federated Hrmes Total Return Government Fond Fund Instl Shares

You may elect to direct the investment of your own account balance in investments of your choice, subject to certain limits, by establishing a separate account in the Plan. You will be charged a fee for the separate account and for each transaction made within your separate account. Please contact Lori Busch if you are interested in opening a separate account, which will be maintained by Schwab.

Yes. You may change your investment elections online. Access your account at www.principal.com. Click the Investments tab and then click “Change Investments.”

After you attain age 59½ and are still employed by Cline Williams, you may elect to receive a distribution during any Plan Year of no more than 10% of the value of your vested account balance. The amount of the distribution is subject to applicable taxes. You may withdraw funds without penalty after age 65.

Yes. The minimum loan amount is $1,000. The maximum loan amount is the lesser of (a) 50% of your vested account balance or (b) $50,000 reduced by your highest loan balance during the 12-month period ending on the day preceding the date of your loan application. Generally, the term of the loan cannot exceed 5 years. If you use the loan funds to purchase your principal residence, the term of the loan cannot exceed 10 years. You may have no more than 2 loans outstanding at any time. You may take out one new loan or refinance an existing loan one time during a calendar year. If you would like to borrow money from your retirement account, click on the Loans tab and then click to “Explore A Loan.”

Yes. After-tax contributions are allowed by the Plan. You may elect to contribute to a Roth plan through payroll deduction by indicating the amount online under Contributions. You may also rollover certain amounts to a Roth rollover account.

An In-Plan Roth Rollover allows you to move certain amounts already in your Cline Williams Wright Johnson & Oldfather, L.L.P. Profit Sharing Plan & Trust (the “Plan”) account into a Roth rollover account. When you “roll over” these amounts to the new Roth rollover account, you pay income tax on the converted amounts. The amount in your new Roth rollover account is converted to after-tax funds. This means that when the amount and any earnings are distributed from your new Roth rollover account, you will receive these funds tax free as long as you comply with the Roth distribution rules.

There are three accounts that you can rollover in an In-Plan Roth Rollover. These accounts are the:

1. Employer Contribution Account,
2. Former Basic Contribution Account, and
3. 401(k) Deferral Account.

The Employer Contribution Account and Former Basic Contribution Account hold the Firm’s contributions on your behalf. The 401(k) Deferral Account holds the amounts you have elected to defer from your compensation.

There are certain limitations that the IRS has set on when you can convert these accounts. For instance, you may rollover the amounts in your 401(k) Deferral Account only if you have reached the age of 59½, retired, become disabled, or separated from employment. You may rollover the amounts in your Employer Contribution Account and Former Basic Contribution Account if one of the following has occurred:

• You have reached the fifth anniversary of your Plan Entry Date; or
• The Plan has held the amounts in these accounts for at least two years and the amount is vested.

For example, if you are age 40 and have participated in the Plan for 3 years, you would be able to convert only the vested portion of your Employer Contribution Account in an In-Plan Roth Rollover. If, instead, you were age 52 and had participated in the Plan for 10 years, you would be able to convert your entire Employer Contribution Account because you reached the fifth anniversary of your Plan Entry Date.

Cline Williams will provide you with the amounts you can convert at the time of your request. You may choose to convert all of an amount or a portion of the amount. In making this decision, you may want to consider whether you have the personal funds available to pay for the taxes associated with the rollover.

In-Plan Roth conversions are taxable in the year of conversion. So, if you make the rollover or conversion in one calendar year, you will be taxed on the amounts converted in that year. You are taxed on the fair market value of the distribution. The taxable amount is included in your gross income. There is no 20% mandatory withholding from a conversion made as a direct rollover. Instead, you are responsible for any estimated tax reporting and payment. If you leave the converted amount in the plan for five calendar years (counting the year of conversion), there will be no 10% early distribution penalty.

Cline Williams, the payor of the conversion, must report the conversion on a Form 1099-R for the year of conversion. The converted amount must be included in Box 1, and the taxable amount of the conversion must be included in Box 2a. Your basis in the distribution must be reported in Box 5, and Code “G” should be checked in Box 7.

You may pay for the taxes on the converted amounts from your personal funds outside the Plan. You may also pay for the taxes on the converted amounts through withholding a portion of the conversion amounts. However, unless you are age 59½ or older, withholding of federal and state taxes from the conversion amounts will be subject to an additional penalty tax of 10%. You will also want to consider increasing your withholding or making estimated tax payments to avoid an underpayment penalty in the year you make an In-Plan Roth Rollover. Remember the amounts you roll over are treated as income for that year. Talk to the Business Office about changing the amount of your withholding to take into consideration the amount you will be converting in the In-Plan Roth Rollover.

You cannot reverse or recharacterize the conversion after the amounts are converted in the In-Plan Roth Rollover.

You will be required to complete a Waiver of Pre-Retirement Survivor Annuity and Beneficiary Designation Form at the time you enter the Plan. You may change your beneficiary designation at any time by completing a new beneficiary form. Please contact Lori Busch if you want to check whom you designated as your beneficiary.

Access the Waiver of Pre-Retirement Survivor Annuity and Beneficiary Designation Form found in the Benefits section of the intranet.

Once you terminate employment with Cline Williams, you may have the vested portion of your account rolled over directly to an eligible retirement plan. Please contact Lori Busch if you choose to have your funds rolled over to another plan.