401(k) Plan - The Retirement
Saving Plan

Supporting your retirement savings goals.

401(k): A robust option for achieving financial security in retirement

We understand that saving for retirement is essential for securing your financial future. That’s why Compunnel offers comprehensive 401(k) plans
designed to help you achieve your retirement savings goals with confidence.

Why 401(k) Plan?

Our 401(k) plan helps eligible employees save for retirement while enjoying tax advantages. Contributions and investment earnings are tax-deferred,
meaning you won’t pay federal or state income taxes until you withdraw the funds at retirement, allowing your savings to grow more effectively over time.

  • Tax-Deferred Earnings: Under the regular 401(k) Plan money is deducted from the employee’s paycheck before the taxes are withdrawn, which further lowers the employee’s taxable income resulting in lower taxes.
  • Choice of Contribution: Employees have the flexibility to decide their contribution amounts, giving them complete control over how much they save for retirement.
  • Payroll Deductions: In most cases, 401(k) contributions are taken automatically as a payroll deduction. The service provider also provides quarterly reports to employees.
  • Social Security is Not Affected: The 401(k) Plan does not affect the amount an individual receives from Social Security. Instead, a 401(k) plan provides another source of income as a result of savings made by an individual.
  • Safety of Funds: Even if an employee’s company faces a financial crisis and files for bankruptcy protection, the contributed money towards the 401(k) plan is completely safe and is vested in the employee’s account.
  • Investment Options: The plan offers various types of investment vehicles such as money market funds, stable value accounts, bank deposit accounts, bond mutual funds, stock mutual funds, and employee’s own company’s stock, etc.

How It Works - An Overview

Compunnel has partnered with ADP to offer 401(k) as a standard benefit to our employees. However, an employee
has the option to get this benefit either from Compunnel or independently.

  • Under this plan, the employee chooses a specific percentage or dollar amount which is deducted from their salary and further deposited into the 401(k) account on the employee’s behalf.
  • The pre-tax contribution done by an employee is called a “Salary Deferral”. In this case, the employee does not need to pay any income tax when Salary Deferrals are held in the Plan. In addition to this, no earning on Salary Deferrals is taxed while the employee stays in the Plan.
  • To participate under this plan, an employee must fulfill the eligibility. A full-time employee is eligible to enroll in the 401(K) plan after completing 30 days of work and the effective date is the 1st of the month, following completion of 30 days of employment. The employee who has been appointed by/and presently working with Compunnel as a full-time employee should be eligible for participation. However, apart from this employee needs to fulfill other legal eligibility criteria such as a minimum entry age of 21 years.
  • There is an automatic enrolment of 02% deferral for all new hire 401(K) eligible employees.
  • Based on eligibility, employees can enroll themselves online by creating an account on our service provider’s portal(ADP).
  • Employees can access multiple pieces of information and benefits through online accounts as mentioned below:
    • Make changes to investment strategy and rebalance retirement investment options.
    • Option to research investment options and performance such as charts and graphs.
    • Access to personal rate of return & account activity details.
    • Option to access information related to retirement planning and investment.
  • If employees have multiple retirement accounts, they can consolidate their savings into a single account for easier management.

Note: Employees are advised to be updated with the 401(K) saving plan limits for 2026. Participants under age 50 are allowed to contribute up to $24,000 annually. Participants age 50 and over are allowed to contribute up to $8,000 more annually.

For further details, employees are advised to visit our service provider’s website www.workforcenow.adp.com and https://www.mykplan.com/.