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New 401(k) Plan Effective Jan. 1, 2014

The Carpenters of Western Washington Individual Account Pension Plan will be converted from a money purchase pension plan to a 401(k) profit-sharing plan effective January 1, 2014. As part of this change, participants will be able to have 401(k) elective contributions made to the plan on their behalf. This is a great opportunity for participants to increase their retirement savings with tax-advantaged contributions, tax-deferred growth and most of the income options currently available to retirees.

Qualifying participants who wish to take advantage of this important opportunity must complete an Application for 401(k) Elective Contributions as soon as possible. Applications were mailed to qualifying participants in early November. You can download a paper version of the application application or fill out an application online. When downloading the online form, remember to make three copies of the completed application and send one to Carpenters Trusts.

The following guidelines should be helpful during this process:

  1. The annual election period begins November 1, 2013 and ends December 16, 2013. Applications must be received by Carpenters Trusts not later than December 16, 2013.
  2. Qualifying participants can elect to have $1.00, $2.00, $3.00, or $4.00 per hour deducted from their paychecks. Deductions are made before income taxes, but are subject to Social Security payroll taxes (FICA) and federal unemployment taxes (FUTA).
  3. Participants must give a copy of their application to their employers. Remember, 401(k) contributions are for hours worked on and after January 1, 2014. If you give your employer a copy of the application now, be sure to remind your employer of your 401(k) contribution amount on the first day of work in January 2014.
  4. Participants should complete an application even if they currently have 401(a) supplemental contributions made to the plan on their behalf. The plan will no longer accept 401(a) contributions for hours worked on and after January 1, 2014.
  5. Participants should complete an application and mail it to Carpenters Trusts even if they are not working for a contributing employer. This reserves your right to 401(k) contributions when you begin working for a contributing employer.
  6. Unlike 401(a) contributions, participants do not need to have industry seniority to have the higher hourly contribution rates deducted from their paychecks.
  7. Once an election is made, this election remains in place for all of 2014. The only change that can be made during the calendar year is to reduce the 401(k) contribution to $0. Participants can elect a new 401(k) contribution amount during the next annual election period.
  8. When moving from one employer to another employer, participants must give a copy of the application to their new employer on the first day of work. This is the only way employers will know they should make 401(k) deductions from your paycheck and how much to deduct.

If qualifying participants elect to have 401(k) contributions, these contributions will be invested along with all other plan contributions, including the $.60 per hour employers make as part of collective bargaining. The Carpenters Individual Account Pension Plan is invested in a mix of bonds, domestic and international stocks, real estate equity, and private equity. The plan has earned an average of 7.3 percent over the past ten years.

Participants should contact Retirement Services at Carpenters Trusts in Seattle if they have any questions about the Application for 401(k) Elective Contributions or 401(k) elective contributions in general.