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Retirement Plans
A defined contribution retirement plan for owners and employees

Retirement Plans through Extraco Trust allow employees to build money for retirement by investing tax-deductible employer contributions in a tax-deferred fund. Any type of business can set up such a plan, including not-for-profit organizations and for-profit sole proprietorships, partnerships and corporations.

One category of Retirement Plans — defined contribution plans — include Profit-Sharing, 401(k), age-based, Employee Stock Ownership Plans (ESOP) and Money Purchase Plans. The employee benefit depends on plan contributions and the earnings on the investments in the plan. Contributions may be based on the profitability of the company and they need not be mandatory. Each participant's share of the contributions is determined mainly by compensation. Employers have some flexibility in choosing a contribution sharing method that will provide the best program for their workforce. Employers also have some flexibility in creating vesting schedules eligibility requirements and other plan features.

Profit-Sharing Plans are often paired with Retirement Plans to offer employees higher contribution limits and more flexibility.

The amount contributed is limited and can vary each plan year. The benefit depends on plan contributions and the interest earned by the investments in the plan.

Employers have some flexibility in creating vesting schedules. Depending on the schedule selected, employees may or may not have the right to receive the entire plan's balance when he or she begins taking distributions.

For more information, contact an Extraco Relationship Manager by e-mail, or call 866-EXTRACO toll-free.

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