Employee Benefits
401(k) Salary Savings Plan

The Traditional 401(k) allows partcipating employees to reduce their taxable income by contributing a portion of their gross income to the 401(k) on a pre-tax basis. Contributions and earnings are not taxed until they are received, generally at retirement when participants are usually in a lower tax bracket.

The Roth 401(k) allows participating employees the opportunity to take tax-free distributions upon retirement, as long as the participant meets certain qualifications, by paying taxes on their contributions up front. Unlike the Traditional 401(k), the Roth 401(k) offers the participant the potential for tax-free retirement income later by investing on an after-tax basis now.

For detailed information, refer to the 401(k) Defined Contribution Plan.

Eligibility
Exempt employees, Elected Officials and other employees that are granted this benefit through an employment contract are eligible to participate in these supplemental retirement plans that allow employees to defer a portion of their salary on a pre-tax (Traditional) or after-tax (Roth) basis, within certain IRS limits, to an account maintained by an investment service provider. The current investment service provider is ING Financial Services.

Employees may enroll at any time and may select from multiple investment options. The County, as Plan Administrator, regularly monitors the investment options and deletes or replaces funds that fail to perform according to the guidelines set forth in the County of San Bernardino Investment Policy and Procedures Statement.

County Contributions-Traditonal 401(k)
In addition to the employee’s contribution, the County will match up to 4% of the participant’s salary at a ratio of 2 to 1 for employees in Exempt Group A, B and C. The County will match up to 3% of the participant’s salary at a ratio of 2 to 1 for employees in Exempt Group D. For example, if a participant elects to defer 4% or more of their biweekly base salary to the Plan, the County will contribute a maximum of 4% times two (8%) of the bi-weekly base salary. However, if the participant elects to defer less than 4% of their biweekly base salary then the County will only match the elected percentage times two.

Note: County matched contributions are deferred to the Traditional 401k only.

Withdrawal Period
There is a substantial early withdrawal penalty that will be assessed against any distributions made prior to age 59½ (or age 55 if eligible to retire under SBCERA at that age).

Loan Provisions
In-service distributions are limited to loans and hardship withdrawals. Both options are subject to several restrictions. Employees should make themselves familiar with the loan and hardship provisions in the 401(k) Plan document before participating in the plan. Any employee who has questions, or who is interested in participating in the 401(k) Plan, should contact ING.