P. Murphy & Associates, Inc.
401 (k) Plan Features & Highlights

How does a 401 (k) plan benefit me?
A 401 (k) plan is a retirement savings and investment plan designed to allow eligible employees to supplement any existing retirement and pension benefits by saving and investing pre-tax dollars through voluntary salary deferral.

Contributions and any earnings on those contributions are tax-deferred until the money is withdrawn. Distributions are usually taken at retirement when many participants are in a lower income bracket than while working.  

Why should I participate in a 401K Plan?
If you are interested in saving and investing additional money for retirement and/or reducing the amount of current state and federal income tax you pay each year, your 401 (k) Plan is an excellent tool.

Who is eligible to enroll in PMA's 401K Plan?
To enroll in the plan, employees must:
      Have completed 1,000 hours of service.
      Be 18 years or older.
      (Non-Resident alien employees are not eligible to participate in the plan.)

Eligible employees may enroll on the first day of each month.

How do I enroll?
Contact P Murphy for an enrollment form, complete it and return it to our controller.

What are the contribution limits?
Before-tax contribution maximum contribution amount is 100% of your compensation and for 2008, this amount is $15,500.  The maximum contribution amount then will be indexed for inflation in $500 increments.

Participants turning age 50+ may in 2008 contribute an additional $5,000.  The additional contribution will be indexed in $500 increments.

What are my investment option choices?
A wide array of core investment options is available through your Plan.  Each option is explained in further detail in your Plan's fund sheets.  Once you have enrolled, investment option information is also available at www.gwrs.com or by calling KeyTalk toll free at 1-800-456-5112. KeyTalk is available 24 hours a day, 7 days a week.

Managing Your Account

How do I keep track of my account?
A quarterly account statement will be mailed showing your account balance and activity.  You can also check you account balance at www.gwrs.com or by calling KeyTalk toll free at 1-800-456-5112. KeyTalk is available 24 hours a day, 7 days a week.

How do I make investment option changes?
Use your Personal Identification Number (PIN) and Username to access the Website or you can use your social security number and PIN to access KeyTalk.  You can move all or a portion of your existing balance between investment options (subject to Plan rules) and change how your payroll contribution are invested.  

Taxes

How does my participation in the Plan affect my taxes?
Before-tax contribution and any earning are tax-deferred until you withdraw the money, usually at retirement.

Distribution from the Plan are taxable as ordinary income during the years in which they are distributed, or made available to you or to your beneficiary at your then current tax rate.  A 10% early withdrawal federal tax penalty may also apply to distributions taken before age 59 1/2.

Fees
Are there any recordkeeping or administrative fees to participate in the Plan?
An annual Variable Asset Charge of 1.00% is calculated and deducted daily as part of the unit value of each of your variable investment options.

Quarterly recordkeeping fee: $6.00

For information on Rollovers, Distributions, Loans and Investment Assistance, please refer to your Great West Retirement Services Retirement & Investment guide.
A copy was provided when you signed up. If you would like an additional copy, please request one from our account department at (818)841-2002 X14 or email Accounting@PMurphy.com.