ta k e t h e f i r s t s t e p t o w a r d s a v i ... - krop · read this booklet and enroll...

T A K E T H E F I R S T S T E P T O W A R D S A V I N G F O R R E T I R E M E N T

ABC Company 401(k) Savings Plan

C O M P A N Y

. . . . . . . . . . . . .

F O l l O W T H I S

E A S y G u I D E T O

S T A R T P l A N N I N G

F O R R E T I R E M E N T

. . . . . . . . . . . . .

l E A R N A b O u T y O u R P l A NT A K E A M O M E N T T O G E T I N T H E S W I N G O F T H I N G S

W e l c o m e t o t h e p l a n !

Did you know the average American may spend 30

years in retirement? Financial experts say that many

people spend more time planning a vacation then they

spend planning their retirement.

Now that you’re eligible, consider enrolling in the

ABC Company 401(k) Savings Plan to ensure you have

the money you need in the future.

Plan today for tomorrow by taking a few minutes to

read this booklet and enroll today. It’s easy, so let’s

get started.

S i g n u p t o d a y !

Enroll online www.yourplanurl.com

OR call 1.800.123.4567 OR use

the form inside this booklet

i n t h i S b o o k l e t

A B O u t YO u R p l A n

B E n E f i t s O f pA R t i c i pAt i n g

i n v E s t m E n t O p t i O n s

Acc E s s i n g YO u R AccO u n t

Donec in libero quis orci convallis dignissim. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos hymenaeos. Etiam non lacus. Fusce non magna a wisi mattis placerat. Ut dignissim lectus ut justo. Ut ut leo. Aenean tristique, ipsum quis pharetra laoreet, justo est at

1 | i t ’ S c o n v e n i e n t

The ABC Company 401(k) Savings Plan lets you contribute up to xx% of your pay through automatic payroll deductions. The IRS caps your contributions at $16,500 for 2010. If you will be age 50 or older by the end of the year and you are already contributing the maximum allowed by the IRS, you can save even more by making additional catch-up contributions of up to $5,500 in 2010.

2 | y o u r e m p l o y e r h e l p S y o u S a v e

For every $1 put into a plan account, the company contributes 50 cents, up to 6% of annual compensation. That’s like getting free money!

3 | t a x b e n e f i t S

Because plan contributions are made before taxes are calculated, more income stays in your pocket. The plan’s tax breaks may help you keep more of your money today and tomorrow.

continued

Source: Social Security Administration, Income of the Aged Chartbook, 2008. April 2010

y O u c A N ’ T R E l y O N l y O N S O c I A l S E c u R I T y

Financial experts say you’ll need from 70% to 90% of your pre-retirement income to maintain your standard of living in retirement.

Where will it come from? Today, Social Security accounts for just over one-third of the income of the average retired American. The truth is that your retirement savings, as well as other personal income sources, will be the key to your future financial security.

Social Security

personal Sources(retirement savings, pensions, asset income, earnings, other)

36%

64%

5 W A y S T H E P l A N M A K E S I T E A S y T O S A V E

yOuR FuTuRERETIREMENT

INcOME

1

2

3

4 | p o r t a b i l i t y

You are 100% vested in your own contributions and any rollover contributions you make to the plan, as well as any earnings on those contributions. It’s an account you can take with you throughout your career.

If you have an account from a previous employer, you can roll it into your account with the ABC Company 401(k) Savings Plan. Having all your retirement money in one account can make it easier to manage.

5 | S i m p l e i n v e S t m e n t c h o i c e S

The plan offers easy one-step diversified investment options—LifeCycle Funds, or you can create your own investment mix from among the plan’s other choices. Your plan also offers an automatic account rebalancing service to help keep your assets allocated properly.

t a x S a v i n g S

Saving for retirement will cost you less than you think.

Because of the tax breaks your 401(k) offers, each dollar

you contribute will cost you less than a dollar from your

paycheck. Consider the following illustrations for

a 30-year-old earning $40,000.

P R E P A R E F O R y O u R F u T u R ED I S c O V E R T H E b E N E F I T S O F P l A N N I N G A H E A D

Assumes an annual salary of $40,000 and a marginal Federal tax rate of 25%.

M O R E S A V I N G S , l O W E R T A x E S — T O D A y

You contribute before-tax dollars to your company retirement plan, which lowers your taxable income. Now let’s see how that adds up.

contributing $1,200 a year could result in $1,800 in retirement savings and could reduce your current taxable income!+

not in in the the plan plan

Annual pay $40,000 $40,000

3% contribution (3%) $0 $1,200

Company match $0 $600

annual savings amount $0 $1,800 Taxable pay $40,000 $38,800

Taxes due $10,000 $9,700

annual tax savings $0 $300

2 | www.yourplanurl.com

a l i t t l e m o r e c a n m a k e a b i g d i f f e r e n c e l a t e r

Can’t afford to save right now? Even a small amount invested on a regular basis can make a difference over time. Investors often find ways to lower household expenses to allow for higher savings.

S t a r t S a v i n g e a r l y

Start saving as much as you can, as early as you can. Try to work up to the percentage that provides the maximum matching dollars from your employer. Consider increasing your contribution just 1% a year, each year.

For example, suppose you contribute $300 per month to your traditional 401(k) and earn an average annual 8 percent rate of return. If you participate for 20 years, the account could be worth $178,184. But if you had started 10 years earlier and contributed at the same rate for 30 years, your account could be worth nearly three times that — $450,388.

Example shown is for a 30-year-old, retiring at age 65, annual compensation of $40,000. Potential account balance includes company match of 50% on the first 100% deferred, up to 6% of annual compensation. The IRS limit for contributions is $16,500 in 2010. Numbers rounded to the nearest whole dollar. Also assumes an 8% rate of return.

if your situation changes, the plan allows you to make adjustments at any time.+

3%Contributions: $42,000

Company Match: $21,000

potential Account Balance at age 65 $321,385

A l I T T l E M O R E G O E S A l O N G W A y

With tax-deferred compounding, a company match, and time working for you, here’s what contributing even 2% more could mean at age 65.

5%

7%

Contributions: $70,000



Contributions: $98,000



for more plan specifics, see the plan highlights in the back of this booklet.

cONTRIbuTION RATE

ABC Company 401(k) Savings Plan | 3

I N V E S T M E N T O P T I O N SF I N D A F I T T H A T ’ S c O M F O R T A b l E A N D H E l P S y O u M E E T y O u R G O A l S

S e l e c t t h e i n v e S t m e n t S t h a t a r e r i g h t f o r y o u

Selecting investments is a personal choice based on how much risk you are comfortable with and how many years you will invest your money. Picking the most suitable investments is easier if you know the three most common types of investments:

stock investments are ownership in one or more companies.

Bond investments are loans to government entities or companies that usually pay interest regularly until they mature.

money market investments are short-term loans to a government or highly rated company.

d i v e r S i f i c a t i o n c a n r e d u c e r i S k o v e r t i m e

You can reduce your investment risk by practicing

diversification, which is investing in different types of

investments. Diversification cannot guarantee your

account will never go down, but it generally works

because various types of investments rarely perform

exactly the same way at the same time.

A V E R A G E A N N u A l R E T u R N S O V E R T I M E

Historically, stocks have exposed investors to greater risks but provided higher returns

money markets

lower risklower return

3.8% bondsMedium risk

Medium return

5.9%StocksHigher risk

Higher return

9.6%

POTENTIAl RISK

PO

TEN

TIA

l R

ETu

RN

Source: 1925-2008. Source: Stocks, Bonds, Bills & Inflation 2010 Yearbook, Morningstar, Inc. Data is based on the S&P 500 Composite Index for stocks, Citigroup Long-Term High Grade Corporate Index for bonds, and a U.S. Treasury one-bill portfolio for cash. Past perfor-mance does not guarantee future results.


i n v e S t m e n t o p t i o n S t h a t m e e t y o u r n e e d S

How much time, interest, and confidence do you have in investing? If you answered “not much,” consider the Lifecycle Funds. If you answered “some” or “a lot,” you may want to put together your own portfolio of investments.

lifecycle funds If you want a ready-made, diversified investment that is professionally managed, you can invest in LifeCycle Funds based on the year you plan to retire. It’s that simple!

create your own investment mix If you want more hands-on control of your investments, choose among the mutual funds your plan offers. Mutual funds make investing easier because investment professionals manage the holdings within each fund, buying and selling those holdings to help investors make money. Each fund may invest in hundreds or thousands of different holdings.

Your investment options are provided on page 15.

What investment strategy is right for you?

Consider how long you will be investing, your other investments, and your comfort level with risk.

?


N O W 40% Money Market

40% Bond

20% Stocks

very conservative: Least Risk/Return Potential

l I F E c yc l E I N cO M E F u N D

yEARS TO RETIREMENT

40 y E A R S

5% Money Market

5% Bond

90% Stocks

very Aggressive: Highest Risk/Return Potential

2050 l I F E c yc l E F u N D

30 y E A R S

5% Money Market

15% Bond

80% Stocks

Aggressive: High Risk/Return Potential


20 y E A R S

15% Money Market

25% Bond

60% Stocks

moderate: Moderate Risk/Return Potential


10 y E A R S

25% Money Market

35% Bond

40% Stocks

conservative: Low Risk/Return Potential


A c T N O W — E N R O l l T O D A y !N O M O R E D E c I S I O N S . J u S T T A K E T H E l A S T S T E P A N D S I G N u P .



ABC Investnow Income Lifecycle Fund

Fund description: Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Cras consectetuer tempus diam. Cras bibendum iaculis orci. Nulla ornare aliquet risus. In non ipsum sed ligula dignissim viverra. In quis libero. Donec sollicitudin ligula vel nunc. Aliquam gravida sollicitudin elit. Nam nec augue ut nulla vulputate lobortis. Cras dignissim, mauris a blandit varius, nunc erat dignissim enim, sit amet dapibus purus metus eu lacus. Aenean lobortis rutrum tellus. Proin viverra metus id ante. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos hymenaeos.

Inception date: 1/1/1997 Ticker: ABCILF Expense ratio: 0.94 Benchmark: Russell 2000 Value

Annualized performance as of 10/31/2010 Since inception: 11.3710 Yr: 11.375 Yr: 16.173 Yr: 18.741 Yr: 18.13

ABC Investnow 2020 Lifecycle Fund

Fund description: Cras consectetuer tempus diam. Cras bibendum iaculis orci. Nulla ornare aliquet risus. In non ipsum sed ligula dignissim viverra. In quis libero. Donec sollicitudin ligula vel nunc. Aliquam gravida sollicitudin elit. Nam nec augue ut nulla vulputate lobortis. Cras dignissim, mauris a blandit varius, nunc erat dignissim enim, sit amet dapibus purus metus eu lacus. Aenean lobortis rutrum tellus. Proin viverra metus id ante. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos hymenaeos. Lorem ipsum dolor sit amet, consectetuer adipiscing elit.

Inception date: 1/1/1997 Ticker: ABC20L Expense ratio: 0.94 Benchmark: Russell 2000 Value



Fund description: Nulla ornare aliquet risus. In non ipsum sed ligula dignissim viverra. In quis libero. Donec sollicitudin ligula vel nunc. Aliquam gravida sollicitudin elit. Nam nec augue ut nulla vulputate lobortis. Cras dignissim, mauris a blandit varius, nunc erat dignissim enim, sit amet dapibus purus metus eu lacus. Aenean lobortis rutrum tellus. Proin viverra metus id ante. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos hymenaeos. Lorem ipsum dolor sit amet, con-sectetuer adipiscing elit. Cras consectetuer tempus diam. Cras bibendum iaculis orci.








Fund description: Nulla ornare aliquet risus. In non ipsum sed ligula dignissim viverra. In quis libero. Donec sollicitudin ligula vel nunc. Aliquam gravida sollicitudin elit. Nam nec augue ut nulla vulputate lobortis. Cras dignissim, mauris a blandit varius, nunc erat dignissim enim, sit amet dapibus purus metus eu lacus. Aenean lobortis rutrum tellus. Proin viverra metus id ante. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos hymenaeos. Lorem ipsum dolor sit amet, con-sectetuer adipiscing elit. Cras consectetuer tempus diam.



y o u r i n v e S t m e n t o p t i o n S

Aliquam tristique quam at felis. Morbi vehicula risus sit amet metus ibus purus metus eu lacus aenean lobortis rutrum tellus. Proin viverra metus id ante. Class aptent taciti sociosqu ad litora torquent per conubia nostra aenean lobortis rutrum tellus.

5 lifestyle investments

2 money market investments

2 Bond investments

10 stock investments


I N V E S T M E N T P E R F O R M A N c Ec H O O S E y O u R I N V E S T M E N T S l I K E A P R O

ABC Investnow Money Market Fund


Inception date: 1/1/1997 Ticker: ABCMMF Expense ratio: 0.94 Benchmark: Russell 2000 Value


ABC Investnow Cash Management Fund


Inception date: 1/1/1997 Ticker: ABCCM Expense ratio: 0.94 Benchmark: Russell 2000 Value


ABC Investnow Bond Fund A


Inception date: 1/1/1997 Ticker: ABCBF Expense ratio: 0.94 Benchmark: Russell 2000 Value


ABC Investnow Capital Bond Fund


Inception date: 1/1/1997 Ticker: ABCCB Expense ratio: 0.94 Benchmark: Russell 2000 Value


ABC Investnow Aggressive Growth Fund


Inception date: 1/1/1997 Ticker: ABCAG Expense ratio: 0.94 Benchmark: Russell 2000 Value


ABC Investnow Balanced Fund A


Inception date: 1/1/1997 Ticker: ABCBA Expense ratio: 0.94 Benchmark: Russell 2000 Value





ABC Investnow Global Investment Fund


Inception date: 1/1/1997 Ticker: ABCGI Expense ratio: 0.94 Benchmark: Russell 2000 Value


ABC Investnow Large Cap Growth Fund


Inception date: 1/1/1997 Ticker: ABCLC Expense ratio: 0.94 Benchmark: Russell 2000 Value


ABC Investnow Mid Cap Ventures Fund

Fund description: Cras bibendum iaculis orci. Nulla ornare aliquet risus. In non ipsum sed ligula dignissim viverra. In quis libero. Donec sollicitudin ligula vel nunc. Aliquam gravida sollicitudin elit. Nam nec augue ut nulla vulputate lobortis. Cras dig-nissim, mauris a blandit varius, nunc erat dignissim enim, sit amet dapibus purus metus eu lacus. Aenean lobortis rutrum tellus. Proin viverra metus id ante. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos hymenaeos. Lorem ipsum dolor sit amet, consectetuer adipiscing elit.

Inception date: 1/1/1997 Ticker: ABCMC Expense ratio: 0.94 Benchmark: Russell 2000 Value


ABC Investnow Small Cap Fund


Inception date: 1/1/1997 Ticker: ABCSC Expense ratio: 0.94 Benchmark: Russell 2000 Value


ABC Investnow Technology Fund


Inception date: 1/1/1997 Ticker: ABCTK Expense ratio: 0.94 Benchmark: Russell 2000 Value


ABC Investnow Balanced Index Fund


Inception date: 1/1/1997 Ticker: ABCBI Expense ratio: 0.94 Benchmark: Russell 2000 Value




ABC Investnow International Fund


Inception date: 1/1/1997 Ticker: ABCIL Expense ratio: 0.94 Benchmark: Russell 2000 Value


ABC Investnow World Fund

Fund description: Cras consectetuer tempus diam. Cras bibendum iaculis orci. Nulla ornare aliquet risus. In non ipsum sed ligula dignissim viverra. In quis libero. Donec sollicitudin ligula vel nunc. Aliquam gravida sollicitudin elit. Nam nec augue ut nulla vulputate lobortis. Cras dignissim, mauris a blandit varius, nunc erat dignissim enim, sit amet dapibus purus metus eu lacus. Aenean lobortis rutrum tellus. Proin viverra metus id ante. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos hymenaeos.

Inception date: 1/1/1997 Ticker: ABCWF Expense ratio: 0.94 Benchmark: Russell 2000 Value


f u n d d i S c l o S u r e S


Quisque sed purus sollicitudin risus tincidunt interdum. Nulla id tortor sit amet leo tincidunt sodales. Quisque sed turpis. Donec in libero quis orci convallis dignissim. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos hymenaeos. Etiam non lacus. Fusce non magna a wisi mattis placerat. Ut dignissim lectus ut justo. Ut ut leo. Aenean tristique, ipsum quis pharetra laoreet, justo est blandit tellus, ut gravida purus mi eget neque.

Nam vel odio quis leo lacinia interdum. Curabitur at turpis sit amet massa adipiscing commodo. Nullam a sapien. Pellentesque mattis justo ac nunc. Maecenas at libero eget felis sollicitudin feugiat. Nam eleifend ultricies dolor. Fusce eleifend, nibh in sodales rutrum, diam nibh commodo wisi, quis scelerisque arcu libero vel neque. Mauris at justo blandit dolor eleifend viverra.

y o u r i n v e S t m e n t o p t i o n S


Morbi vehicula risus sit amet metus ibus purus metus eu lacus aenean lobortis rutrum tellus. Proin viverra metus id ante. Class aptent taciti sociosqu ad litora conubia nostra aenean lobortis rutrum tellus.

Proin viverra metus id ante. Morbi vehicula risus sit amet metus ibus purus metus eu lacus aenean lobortis rutrum tellus. Class aptent taciti sociosqu ad litora torquent per nostra aenean lobortis rutrum tellus.




p a r t i p e r f o r m a n c e i n f o r m a t i o n

Table below focuses on the performance of investment options that do not have a fixed or stated rate of return. Table below shows how these options have performed over time and allows you to compare them with an appropriate benchmark for the same time periods. Past performance does not guarantee how the investment option will perform in the future. Your investment in these options could lose money. Information about an option’s principal risks is available on the website[s].

Name/Type of OptionAverage Annual Total Return

as of 12/31/XXBenchmark

1 yr 5 yr 10 yr Since Inception

Inception Date 1 yr 5 yr 10 yr Since

Inception

Equity Funds (Ticker)

ABC Investnow Aggressive Growth Fund (ABCAG) 26.5% .34% -1.03% 9.25% 04/11/2000 26.46% .42% -.95% 9.30%

ABC Investnow Balanced Fund A (ABCBA) 27.6% .99% N/A 2.26% 04/11/2000 27.80% 1.02% N/A 2.77%

ABC Investnow Balanced Index Fund (ABCBI) 36.73% 5.26% 2.29% 9.37% 04/11/2000 40.40% 5.40% 2.40% 12.09%

ABC Investnow Global Investment Fund (ABCGI) 40.22% 2.28% 6.13% 3.29% 04/11/2000 46.29% 2.40% -.52% 4.16%

ABC Investnow Large Cap Growth Fund (ABCLC) 36.73% 5.26% 2.29% 9.37% 04/11/2000 40.40% 5.40% 2.40% 12.09%

ABC Investnow Mid Cap Ventures Fund (ABCMC) 40.22% 2.28% 6.13% 3.29% 04/11/2000 46.29% 2.40% -.52% 4.16%

ABC Investnow Small Cap Fund (ABCSC) 36.73% 5.26% 2.29% 9.37% 04/11/2000 40.40% 5.40% 2.40% 12.09%

ABC Investnow Technology Fund (ABCTK) 40.22% 2.28% 6.13% 3.29% 04/11/2000 46.29% 2.40% -.52% 4.16%

ABC Investnow World Fund (ABCWF) 36.73% 5.26% 2.29% 9.37% 04/11/2000 40.40% 5.40% 2.40% 12.09%

ABC Investnow International Fund (ABCIL) 40.22% 2.28% 6.13% 3.29% 04/11/2000 46.29% 2.40% -.52% 4.16%

Bond Funds (Ticker)

ABC Investnow Bond Fund A (ABCBF) 6.45% 4.43% 6.08% 7.08% 04/11/2000 5.93% 4.97% 6.33% 7.01%

ABC Investnow Capital Bond Fund (ABCCB) 40.22% 2.28% 6.13% 3.29% 04/11/2000 46.29% 2.40% -.52% 4.16%

Target Date Funds (Ticker)

ABC Investnow Income Target Date Fund (ABCTDF) 27.94% N/A N/A 2.45% 04/11/2000 26.46% N/A N/A 3.09%

ABC Investnow 2020 Target Date Fund (ABC20T) 40.22% 2.28% 6.13% 3.29% 04/11/2000 46.29% 2.40% -.52% 4.16%

ABC Investnow 2030 Target Date Fund (ABC30T) 36.73% 5.26% 2.29% 9.37% 04/11/2000 40.40% 5.40% 2.40% 12.09%

ABC Investnow 2040 Target Date Fund (ABC40T) 40.22% 2.28% 6.13% 3.29% 04/11/2000 46.29% 2.40% -.52% 4.16%

ABC Investnow 2050 Target Date Fund (ABC50T) 36.73% 5.26% 2.29% 9.37% 04/11/2000 40.40% 5.40% 2.40% 12.09%

Variable Return Investments

1Generations 2020 composite index is a combination of a total market index and a US aggregate bond index proportional to the equity/bond allocation in the Generations 2020 Fund.



Name/Type of OptionAverage Annual Total Return

as of 12/31/XXBenchmark

1 yr 5 yr 10 yr Since Inception

Inception Date 1 yr 5 yr 10 yr Since

Inception

Money Market (Ticker)

ABC Investnow Money Market Fund (ABCMMF) .72% 3.36% 3.11% 5.56% 04/11/2000 1.8% 3.1% 3.3% 5.75%

ABC Investnow Cash Management Fund (ABCCM) 4.36% 4.64% 5.07% 3.75% 04/11/2000 1.8% 3.1% 3.3% 4.99%

Other (Ticker)

Highbridge Dynamic Commodities Strategy Fund (HDCSF) .72% 3.36% 3.11% 5.56% 04/11/2000 1.8% 3.1% 3.3% 5.75%

100% U.S. Treasury Securities Money Market Fund (UTSMMF) 4.36% 4.64% 5.07% 3.75% 04/11/2000 1.8% 3.1% 3.3% 4.99%

Variable Return Investments

p a r t i i f e e a n d e x p e n S e i n f o r m a t i o n

Table below shows fee and expense information for the investment options listed in Table above. Table below shows the Total Annual Operating Expenses of the options in Table above. Total Annual Operating Expenses are expenses that reduce the rate of return of the investment option. Table below also shows Shareholder-Type Fees.

Fees and Expenses

Name/Type of OptionTotal Annual

Operating ExpensesShareholder-Type Fees

As a % Per $1000

Equity Funds

ABC Investnow Aggressive Growth Fund (ABCAG) 0.18% $1.80 $20 annual service charge subtracted from investments held in this option if valued at less than $10,000.

ABC Investnow Balanced Fund A (ABCBA) 2.45% $24.50 2.25% deferred sales charge subtracted from amounts withdrawn within 12 months of purchase.

ABC Investnow Balanced Index Fund (ABCBI) 0.79% $7.90 5.75% sales charge subtracted from amounts invested.

ABC Investnow Global Investment Fund (ABCGI) 0.20% $2.00 4.25% sales charge subtracted from amounts withdrawn.

ABC Investnow Large Cap Growth Fund (ABCLC) 0.18% $1.80 $20 annual service charge subtracted from investments held in this option if valued at less than $10,000.

ABC Investnow Mid Cap Ventures Fund (ABCMC) 2.45% $24.50 2.25% deferred sales charge subtracted from amounts withdrawn within 12 months of purchase.




Fees and Expenses

Name/Type of OptionTotal Annual

Operating ExpensesShareholder-Type Fees

As a % Per $1000

Equity Funds

ABC Investnow Small Cap Fund (ABCSC) 0.79% $7.90 5.75% sales charge subtracted from amounts invested.

ABC Investnow Technology Fund (ABCTK) 0.20% $2.00 4.25% sales charge subtracted from amounts withdrawn.

ABC Investnow World Fund (ABCWF) 0.18% $1.80 5.75% sales charge subtracted from amounts invested.

ABC Investnow International Fund (ABCIL) 2.45% $24.50 4.25% sales charge subtracted from amounts withdrawn.

Bond Funds

ABC Investnow Bond Fund A (ABCBF) 0.50% $5.00 N/A

ABC Investnow Capital Bond Fund (ABCCB) 2.45% $24.50 N/A

Target Date Funds

ABC Investnow Income Target Date Fund (ABCTDF) 1.50% $15.00 Excessive trading restricts additional purchases (other than contributions and loan repayments) for 85 days.

ABC Investnow 2020 Target Date Fund (ABC20T) 0.65% $6.50 4.25% sales charge subtracted from amounts withdrawn.

ABC Investnow 2030 Target Date Fund (ABC30T) 1.50% $15.00 Excessive trading restricts additional purchases (other than contributions and loan repayments) for 85 days.

ABC Investnow 2040 Target Date Fund (ABC40T) 0.65% $6.50 4.25% sales charge subtracted from amounts withdrawn.

ABC Investnow 2050 Target Date Fund (ABC50T) 1.50% $15.00 5.75% sales charge subtracted from amounts invested.

Money Market

ABC Investnow Money Market Fund (ABCMMF) N/A N/A 12% charge subtracted from amounts withdrawn before maturity.

ABC Investnow Cash Management Fund (ABCCM) N/A N/A 5% contingent deferred sales charge subtracted from amounts withdrawn; charge reduced by 1% on 12-month anniversary of each investment.

Other

Highbridge Dynamic Commodities Strategy Fund/GICs

0.46% $4.60 10% charge subtracted from amounts withdrawn within 18 months of initial investment.

100% U.S. Treasury Securities Money Market Fund/Stable Value

0.65% $6.50 4.25% sales charge subtracted from amounts withdrawn.

The cumulative effect of fees and expenses can substantially reduce the growth of your retirement savings. Visit the Department of Labor’s website for an example showing the long-term effect of fees and expenses at http://www.dol.gov/ebsa/publications/401kemployee.html. Fees and expenses are only one of many factors to consider when you decide to invest in an option. You may also want to think about whether an investment in a particular option, along with your other investments, will help you achieve your financial goals.



Other Plan Fees and Expenses

Loans$100 $50 4.25%

Initiation Fee — One-time, non-refundable fee applied to account balanceMaintenance Fee — Annual fee applied to account balanceLoan Interest Rate

Withdrawals/Distributions 28% 10%

Federal Tax Witholding on pre-tax retirement account withdrawalEarly-Withdrawal Penalty for non-qualified withdrawal prior to age 59½

Other Expenses

QDRO Investment Advice Other

30% $100 $50

Qualified Domestic Relations Order — Annual transfer of assetsInvestment Advice — Annual fee applied to account balanceAutomatic Rebalancing Fee — Annual fee applied to account balance

Please visit www.ABCPlanglossary.com for a glossary of investment terms relevant to the investment options under this plan. This glossary is intended to help you better understand your options.


You understand how important it is to start saving

for your future. You’ve learned about the benefits

of saving in the ABC Company 401(k) Savings Plan.

You’ve decided how much to contribute to the plan

and chosen your investment options. The only thing

left to do is enroll. c a l l t o e n r o l l 1 . 8 0 0 . 1 2 3 . 4 5 6 7

Press “5” to Enroll by Phone. Use the last 4 digits of your Social Security Number as your initial Personal Identification Number (PIN), and then just follow the prompts to complete the enrollment process. You will also need to submit a completed Beneficiary Designation form to complete your enrollment.

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Visit the enrollment website at www.yourplanurl.com. Click on “Plan Enrollment.” Use your last name and the last 4 digits of your Social Security Number to log in. Then fill in the required fields to complete the enrollment process. You will also need to submit a completed Beneficiary Designation form to complete your enrollment.

m a i l t o e n r o l l

Simply complete the forms on the following pages and return them. If you have any questions, please see your Plan Administrator or call 1.800.123.4567.

1.800.123.4567

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y O u R F I N A l S T E P –– A c T N O Wy O u ’ R E O N T H E R I G H T P A T H , O P P O R T u N I T y A W A I T S



E N R O l l M E N T F O R MI N S T R u c T I O N S O R OT H E R I N F O H E R E

S T E P O N E :

S T E P T W O :

S T E P T H R E E :

ENROLLMENT FORM

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PNO123-45-67890

Enrollment Form 0410(1 of 2)

DFFFFDDFTFDDFTDFTDFTDDFTDFFTDTFTD

Name (first, middle initial, last) Social Security Number Gender

Address (number & street) Date of Birth (mm/dd/yyyy) Date of Hire (mm/dd/yyyy)

Address Email Address

City/Town State Zip Marital Status

1 PA R T I C I PA N T I N F O R M AT I O N (please pr int )

2 PAY R O L L S AV I N G S E L E C T I O N

Married Single

Male Female

The following percentage will be deducted from your pay and deposited to your pre-tax account: [3]%. You may change this percentage or keep the default percentage by checking the appropriate box below.

Pre-Tax Contribution:

_____% of my compensation each pay period for deposit to my pre-tax account (not to exceed [100]%). Your pre-tax contribution amount cannot exceed any applicable limit set by the Plan. Total pre-tax contributions cannot exceed $[15,500] for the [2010] calendar year.

Elect Automatic Deferral Increase: I elect to have the deferrals from my paycheck increase by [1]% annually every [April 1st] until the plan’s automatic deferral increase limit of [15]% is reached.

Decline Automatic Deferral Increase: I decline the option to have my contributions increase automatically at this time.

Roth Contribution:

_____% of my compensation each pay period for deposit to my Roth account (not to exceed any Roth contribution limits set by the plan; read your summary plan description for more details).

Elect Automatic Deferral Increase: I elect to have the deferrals from my paycheck increase by [1]% annually every [April 1st] until the plan’s automatic deferral increase limit of [15]% is reached.


After-Tax Contribution:

_____% of my compensation each pay period for deposit to my after-tax account (not to exceed any after-tax contribution limits set by the plan; read your summary plan description for more details).

Elect Automatic Deferral Increase: I elect to have the deferrals from my paycheck increase by [1]% annually every [April 1st] until the planÕs automatic deferral increase limit of [15]% is reached.


If you reach age 50 any time during the calendar year or are over 50, you may be eligible to contribute up to an additional $[5,500] as a catch-up contribution for the [2010] calendar year. Please check with your Plan Administrator.

Decline Plan Participation: I elect to make no contributions (0%) at this time. I understand I may revoke this election at any time or I may change this election

as allowed by the Plan.

C O M P A N Y

N OT E : b Ac K O F F O R M I N T E N T I O N A l ly l E F T b l A N K


ENROLLMENT FORM

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PNO123-45-67890

Enrollment Form 0410(2 of 2)


I authorize the company to make payroll deductions from my compensation as indicated in this form. This election will remain in effect until I elect to change or to discontinue payroll deductions.

Participant Signature Date

4 S I G N AT U R E R E Q U I R E D (please s ign and send back in enclosed envelope)

3 I N V E S T M E N T E L E C T I O N SAll contributions will be invested as selected below. Choose only one Age-Based Fund OR Create Your Own Investment Mix from the variety of funds listed below.

2010 LifeCycle Fund 2020 LifeCycle Fund 2030 LifeCycle Fund

2040 LifeCycle Fund 2050 LifeCycle FundAge-Based Fund (Based on your retirement date)

Or

Create Your Own Investment Mix(Based on your experience)Investment elections must be in whole increments. If you do not make any investment selections, or if your selections do not total 100%, you will automatically be invested in [Plan Default Fund].

Age-Based FundABC Investnow Income Lifecycle Fund _______% ABC Investnow 2020 Lifecycle Fund _______% ABC Investnow 2030 Lifecycle Fund _______% ABC Investnow 2040 Lifecycle Fund _______% ABC Investnow 2050 Lifecycle Fund _______%

Money MarketABC Investnow Money Market Fund _______% ABC Investnow Cash Management Fund _______%

BondABC Investnow Bond Fund A _______%ABC Investnow Capital Bond Fund _______%

StockABC Investnow Aggressive Growth Fund _______% ABC Investnow Balanced Fund A _______% ABC Investnow Balanced Index Fund _______% ABC Investnow Global Investment Fund _______% ABC Investnow Large Cap Growth Fund _______% ABC Investnow Mid Cap Ventures Fund _______% ABC Investnow Small Cap Fund _______% ABC Investnow Technology Fund _______% ABC Investnow World Fund _______%ABC Investnow International Fund _______%

Fund Name Contribution % Fund Name Contribution %

X


b E N E F I c I A R y F O R MI N S T R u c T I O N S O R OT H E R I N F O H E R E

S T E P O N E :

S T E P T W O :

S T E P T H R E E :

BENEFICIARY FORM

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Beneficiary Form 0410(1 of 2)


Name (first, middle initial, last) Social Security Number Gender

Address (number & street) Date of Birth (mm/dd/yyyy) Date of Hire (mm/dd/yyyy)

Address Email Address

City/Town State Zip Marital Status

1 PA R T I C I PA N T I N F O R M AT I O N (please pr int )

2 B E N E F I C I A R Y D E S I G N AT I O N

Married Single

Male Female

I have read the information on this form and hereby designate the following as my Beneficiary(ies) to receive any death benefits payable under the Plan in the event of my death.

Primary Beneficiary

Name (first, middle initial, last) Social Security Number

Date of Birth (mm/dd/yyyy) Relationship to Participant Percent (if more than one Primary Beneficiary)

Address (Street, City, State, Zip)

Primary Beneficiary Contingent Beneficiary












Note: By law, if you are married and select a primary beneficiary other than your spouse, the spousal consent on the back of this form must be signed and the alternative

beneficiary agreed to by your spouse.

*If you are naming more than one person as a primary or contingent beneficiary, please attach a listing of the persons.

C O M P A N Y

N OT E : b Ac K O F F O R M I N T E N T I O N A l ly l E F T b l A N K


BENEFICIARY FORM

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Beneficiary Form 0410(2 of 2)


I, the participant, hereby certify that the above information is correct and understand this beneficiary designation supercedes any/all previous designations.

Participant Signature Date

Plan Administrator Signature Date

4 S I G N AT U R E R E Q U I R E D (please s ign and send back in enclosed envelope)

3 S P O U S A L CO N S E N TYour spouse has an account in the Plan. The money in the account that your spouse will be entitled to receive is called the vested account. Federal law states that you will receive the vested account after your spouse dies. Your right to your spouse’s vested account cannot be taken away unless you agree. If you agree, your spouse can elect to have all or part of the vested account paid to someone else. Your spouse cannot have the vested account paid to someone else unless you agree and sign this consent.

I, __________________________, do swear and affirm that I am the legal spouse of __________________________, a Participant in the Plan. I hereby acknowledge and consent to the beneficiary designation made by my spouse on _________, which does not name me as a beneficiary. I understand that as a result of this consent, I will not be entitled to any benefit from my spouse’s accounts under the Plan. I further acknowledge that my consent to such designation is irrevocable unless my spouse files a new Beneficiary Designation Form with the Plan Administrator.

X

X

Spouse’s Signature Date

Notarization

Signed or attested before me on Name of Notary

State County Notary’s Signature


Taking control of your financial future is a big step toward getting what you want out of life. Here you’ll find a summary of the plan details to help you decide the level and type of participation that’s right for you.

e l i g i b i l i t y

You are eligible to participate in the plan if you are at least 18 years old and have completed 3 month(s) of employment.

See your plan administrator if you have questions about your eligibility.

y o u r c o n t r i b u t i o n S

You may contribute from 0% to 100% of your eligible pre-taxed compensation, up to the IRS limit of $16,500 in 2009. You can change your pre-tax contribution amount or stop contributing anytime.

r o l l o v e r S

Rolling account balances into one account can simplify managing your retirement assets. Rollovers from other qualified plans will be accepted at any time.

y o u r c o m p a n y ’ S c o n t r i b u t i o n S

For every $1 you contribute as pre-tax contributions, up to 6% of your eligible compensation, ABC Company will add $0.50 to your account as a matching contribution. ABC Company may also make a discretionary profit sharing contribution to your account at the end of each year, based on the company’s profits.

a u t o m a t i c r e b a l a n c i n g

Your investment strategy should change as you get closer to retirement. With automatic rebalancing your account is carefully monitored for specific milestones, at which time it is professionally reallocated to match the appropriate investment strategy and meet your savings goal.

Professionally managed LifeCycle investments are automatically rebalanced on a regular basis. If you choose to invest in individual mutual funds, you have the option to add the automatic rebalancing feature by logging in to your account at www.yourplanurl.com or by calling 800.123.4567. Once you’ve added this feature your account will be automatically rebalanced on a quarterly basis.

v e S t i n g

You are 100% vested in your own contributions and any rollover contributions you make to the plan, as well as any earnings on those contributions.

You will be vested in your company’s matching contributions and any earnings on those contributions according to the schedule below.

Years of service 1yr 2yrs 3yrs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . percent vested 50% 75% 100%

You will also be vested in your company’s discretionary profit sharing contributions and any earnings on those contributions according to the schedule below.

Years of service 1yr 2yrs 3yrs 4yrs 5yrs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . percent vested 20% 40% 60% 80% 100%

A year of service is one in which you work at least 2000 hours in a 12-month period.

P l A N H I G H l I G H T SA S u M M A R y O F T H E P l A N D E T A I l S T O H E l P y O u R E A c H N E W G O A l S


P l A N H I G H l I G H T SA S u M M A R y O F T H E P l A N D E T A I l S T O H E l P y O u R E A c H N E W G O A l S

W i t h d r a W a l S a n d d i S t r i b u t i o n

You may make withdraws from or take distributions from your account at the plan’s normal retirement age of 65, in the event of disability, or in the event of death or termination of employment.

You may be eligible to take a financial hardship distribution in some situations. You must have an immediate and heavy financial need to cover certain medical expenses, costs related to the purchase of your home, qualified educational expenses, or to prevent foreclosure on your home.

You may apply to withdraw from your account if you experience a severe financial hardship, such as money necessary to purchase your home or prevent a foreclosure, tuition, and medical expenses.

Distributions from a qualified retirement plan are subject to ordinary income tax when withdrawn and may be subject to tax penalties if withdrawn before age 59½. That is why it is important to consult your tax advisor about the tax consequences of withdrawals from your account.

l o a n S

Although your plan is intended primarily for long-term retirement savings, you may borrow against your plan’s vested account balance within certain limitations.

You may borrow up to the lesser of 50% or $50,000 of your vested account balance. The minimum loan amount is $500. There is a non-refundable loan set-up fee of $100. Loans are repaid with interest through payroll deduction.

o u t S i d e i n v e S t m e n t o p t i o n S

The ABC Company 401(k) Savings Plan offers a Self-Directed Brokerage Account (SDBO) option that allows you to invest a portion of your savings in a wide range of stocks, bonds, and mutual funds outside your plan’s

investment options through a brokerage account serviced by ABC Corporate Services.

This is a Web-based feature only. You can open an account by logging on to www.ABCSDBO.org and clicking on the “Self-Directed Brokerage” link.

When your account is first established, you must make an exchange of at least $2,500 from your standard plan options to SDBO to activate your SDBO account. There is no minimum amount for payroll contributions.

There is an additional fee for the SDBO. For details call 1.800.123.4567.

S e c t i o n 4 0 4 ( c ) c o m p l i a n c e

The ABC Company 401(k) Savings Plan intends to meet the requirements of Section 404(c) of the Employee Retirement Income Security Act (ERISA) and regulations issued by the U.S. Department of Labor under that section (29 CFR Sec 2550.404(c)-1). The fiduciaries of the Plan may be relieved of liability for any losses that result from your investment decisions.

Information on each investment option offered under the Plan has been made available to you, including investment objectives, risk characteristics, and fees/expenses. You may, upon request, receive the latest information made available to the Plan concerning annual operating expenses of each investment option, including investment management fees, administrative fees, and transaction costs that reduce the rate of return to participants and beneficiaries; the aggregate amount of annual operating expenses expressed as a percentage.

b y p h o n e : 1 . 8 0 0 . 1 2 3 . 4 5 6 7

The interactive voice Response system (ivR) lets you access your account 24 hours a day, 7 days a week, 365 days a year. The IVR is personalized to provide only those features and investment options offered by your plan. Press “0” to speak to a Service Representative Monday-Friday between 8:00 AM and 9:00 PM EST.

When you call the first time To start using the IVR, you need to establish a Personal Identification Number (PIN). Simply follow the instructions provided when you call the first time.

b y c o m p u t e r :

Visit the plan’s website at www.yourplanurl.com. For first-time access, click on “Register.” Use your last name and the last four digits of your Social Security Number to log in. You will be asked to create a new username and password. The next time you visit the site, click on “Login” and enter this username and password.

2 E A S y W A y S T O A c c E S S y O u R

A c c O u N T

1.800.123.4567

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Once you are participating in the plan, it is easy to access and manage your account anytime

by computer or phone. You will be able to check your current account balance, review or

update your investment elections for future contributions, transfer existing assets among

investments, change your deferral rate, access helpful information and interactive tools

(computer only), and change your Personal Identification Number (PIN).


A c c O u N T A c c E S S

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W W W . y O u R P l A N u R l . c O M

c A l l O R G O O N l I N E T O D A y !

These materials were produced by Broadridge Financial Solutions, Inc. All content is fictional, and any resemblances to actual businesses or reports are purely coincidental. Duplication of these documents is unlawful. ©2009 Broadridge Financial Solutions, Inc. 6/2010BR_Auto Enroll_2010, Mohawk #80 Text 50/10 matte, Full Color Digital

Chris Sample123 Sample StreetApt 2Anytown, CA 45678

ABC Company123 Sample StreetSuite 400Anytown, ST 45678

C O M P A N Y

N O T E S

ta k e t h e f i r s t s t e p t o w a r d s a v i ... - krop · read this booklet and enroll...

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