401(k) Retirement Plan (Employees Incentive Savings Plan)
The Powell Industries, Inc. Employees Incentive Savings Plan (401(k) Plan) is a great way to plan for the future by saving for retirement. You are eligible to participate immediately upon hire and can contribute between 1% and 75% of your pay on a pre-tax and/or after-tax basis. Plan highlights include:
Matching contributions. Powell Industries helps your contributions grow through a generous employer match — 50% of the first 6% you contribute — it’s like getting “free” money. New for 2024, Powell will match 50% of the first 7% of your contributions.
Convenience. Your contributions are automatically deducted regularly from your paycheck.
Tax savings now. Your pre-tax contributions are deducted from your pay before income taxes are taken out. This means that you can actually lower the amount of current income taxes you pay each period.
Tax-deferred savings opportunities. You pay no taxes on any earnings until you withdraw them from your account, enabling you to keep more of your money working for you now.
Roth contributions. A Roth contribution to your retirement savings plan allows you to make after-tax contributions and take any associated earnings completely tax free at retirement — as long as the distribution is a qualified one.
Portability. You can roll over eligible savings from a previous employer into this Plan. You can also take your account balance with you if you leave the company.
Investment options. You have the flexibility to select from investment options that range from more conservative to more aggressive, making it easy for you to develop a well-diversified investment portfolio.
Automatic annual increases. Save a little more each year, the easy way – the Annual Increase Program automatically increases your contribution by 1% each year until it gets to 15%.
Online beneficiary. With Fidelity’s Online Beneficiaries Service, you can designate your beneficiaries, receive instant online confirmation, and check your beneficiary information virtually any time.
Catch-up contributions. If you are 50 years of age or older during the calendar year, you can make an additional pre-tax or Roth “catch-up” contribution.
Time is working for you – compound interest and account growth. Compounding means you generate earnings on both the original investment and the reinvested earnings. The longer the interest has to compound, the more the retirement funds may grow. The examples below illustrate the potential impact of matching contributions and the power of compounding:
This chart assumes a $35,000 salary with a 2% annual increase, an annual 7% rate of return, and an employer match of 50% of the first 6% of pay the employee contributes to the Plan:
- 401(k) Summary Plan Description Effective January 1, 2019
- Powell 401(k) Loan Policy
- Fidelity – Powell 401k FAQs & Rollover Form