Post Date - May 20, 2022
We know professional truck drivers have many choices when deciding where to spend their careers which is why Ascend makes it a priority to offer outstanding advantages, support and career options. One of those advantages includes our generous 401(k) and Roth retirement planning support.
”Earlier this year, Ascend merged two of our retirement plans into one improved plan to help our drivers and employees plan and save for the future,” says Sharmika Armstrong, Ascend’s corporate benefits manager. “Ascends 401(k) plan can make all the difference in creating a life you really look forward to. We know you work hard so Ascend wants to help you secure your family's future.”
Ascend manages the traditional 401(k) plan through John Hancock and offers a very generous match with tax savings now and in the future. “The 401(k) plan is also great for drivers new to Ascend to know that you’re eligible the first of the month following your date of hire,” Sharmika says.
New Hires are auto enrolled in 5% unless they opt out. The company matches up to 5% maximum - 100% match on first 3%, then 50% on the next 2%.
Vesting in the program begins after two years at 20% and grows another 20% each year i.e., 3 years = 40%; 4 years =60%; 5 years =80% and 6 years =100%.
As for tax savings in the 401(k) plan, Sharmika says when your contributions are taken out of your paycheck before federal income taxes, you may be able to lower your taxable income and get in a lower tax bracket. “Also, as your retirement plan savings grow, they are tax deferred,” she says. “Your money and any earnings aren’t taxed until you withdraw funds, ideally at retirement. By then, your tax rate may be lower.”
Ascend also supports Roth 401(k) contributions. “With a Roth fund, you pay the tax now, rather than later,” says Sharmika. “This is a good option if you expect your tax rate to be higher when you retire than it is currently or if you’d like to diversify the tax treatment of your money in retirement.
CDL-A drivers who are looking for a career home where you’re taken care of today and tomorrow are invited to connect with us at Ascend today!
NOTE: The information in this blog is not legal or tax advice, please consult with your tax adviser before engaging in any transaction.