401 (K) Frequently Asked Questions

As a PESG employee, you will be eligible to participate in the PESG, LLC 401(k) Plan. This plan has been implemented by PESG to enable you to begin or continue saving for retirement by making pre-tax contributions from your earnings with PESG. In addition to the enrollment booklet, we have found the attached list of Frequently Asked Questions regarding the Plan to be helpful to many employees.

When I start working for PESG, will I be automatically enrolled in the 401k?
Yes. You will be automatically enroll at 3%, unless you “Opt Out” of the 401k plan.

Do I have to contribute to the PESG 401k plan?
No. You do not have to participate in the PESG 401k plan, you can choose to “Opt Out”.

How do I “Opt Out” of the PESG 401k plan using the enrollment form?
In section 2, mark the box that is next to the words “I do not wish to make contributions at this time”.

How much can I contribute to the PESG 401k plan?
The automatic enrollment amount is set at 3%, but you can contribute up to 94.35% of your paycheck.

How much does it cost to be a part of the PESG 401k plan?
There is a $7.50 “administrative fee” deducted from each active employee’s 401k, on a quarterly basis.

Does PESG match any of my contributions?
No. PESG does not match any of the contributions that you make to the 401k plan.

Can I participate in the future if I “Opt Out” now?
Other than at the beginning of your employment, there are only two times of the year that you can start contributing to a PESG 401k plan. They are the “Open Enrollment” periods, during the months of January and July.

When can I make changes to the amount I contribute?
You can make changes to the deductions from your paycheck during the 401k plans open deferral change period, which is on a quarterly basis. Those windows are open during the months of January, April, July and October. You can make those changes by sending an email as your written request.

When can I change the mutual funds in my 401k?
You can call American Funds at any time to change your mutual funds around. Call 1-800/204-3731 to place a trade.

Can I borrow against the amount in my PESG 401k?
No. This is not one of the provisions written into the PESG 401k plan.

Can I take money out of my PESG 401k plan before I retire? (this is called an early 401k distribution)
There are only a few exceptions that would allow you to take an early 401k distribution from the plan. The first would be severing employment with PESG. The second would be reaching the age of 59 ½ (but still working). The third would allow you to withdraw money that you rolled into the PESG 401k from another plan. *taxes and penalties may occur

What if I was automatically enrolled into the PESG 401k plan at 3% and decide that this is not right for me?
You have 90 days to complete the “90-Day Permissible Withdrawal Form” which allows you to obtain a refund for the amount that was contributed into the 401k, minus administrative fees in the first 90 days. This only applies to those who were automatically enrolled in the PESG 401k plan, by choice or error.

How do I access my PESG 401k account online?
After your first paycheck, you would call American Funds at 1-800/204-3731 and ask them to mail you a PIN number. Once you receive the PIN number in the mail, you can go to the website and log on. The website you would go to is www.myretirement.americanfunds.com/.

When I stop working for PESG, what happens to my 401k?
You have 4 options. First: You can leave the plan as it is, at American Funds until you reach retirement. Second: You can roll the 401k plan to another retirement plan at your new employer or full time job. Third: You can rollover/transfer the 401k plan to an Individual Retirement Account (IRA) of your choice. Fourth: You can take a lump sum distribution to yourself, which may result in taxations and penalties. *Please notify PESG when you are done working for them