401(k)

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The OneBeacon 401(k) Savings and Employee Stock Ownership Plan offers tax advantages, savings incentives and investment options to help you achieve your financial goals.

Eligibility, Enrollment and Employee Contributions

Employees are immediately eligible for participation on their first day of employment.  Employees may elect to contribute on a pretax, after-tax or Roth basis up to 40% of salary.  Employees age 50 or older are also eligible for pre-tax and Roth catch-up contributions (IRS limits apply to maximum contribution amounts).  New hires who do not enroll after 60 days are automatically enrolled in pretax contributions at 3% of pay, with an automatic 1% increase each April.  The default for their investments is the age appropriate Target Retirement Fund.

The company match is $0.50 for every $1.00 contributed up to the first 6%; match is made each pay period an employee contributes and applies to pretax, after-tax and Roth.  If you are contributing less than 6% each pay period, you are missing out on free money so consider at least increasing your contribution rate to the 6% level.  You're always vested in your own contributions and are vested in the company match after three years of service.

Important Note:

The company match is made each pay period.  Therefore, you may potentially reach the IRS pre-tax contribution limit before the end of the year.  If so, your payroll deductions will cease, and so will the OneBeacon match.  Make sure when making your contribution election that you won't reach the IRS limit early.  There are two ways to remedy this problem:

• Spread your pre-tax or Roth contributions throughout the year
• Switch over to after-tax contributions once you hit your limit

Your Contributions

For 2012, the maximum annual contribution that the IRS permits to your 401(k) account is $17,000 on a pre-tax (or Roth) basis.

Additionally, if you are 50 or over in 2012, you may defer an additional $5,500 pre-tax (or Roth) during 2012, under the IRS "catch-up" provision, for a total combined pre-tax and Roth contribution amount of $22,500. Note: Catch-up contributions are not eligible for company match.

Investment Options

A wide variety of investment options are available in the Plan, allowing for broad diversification of your retirement assets.

 Are you saving enough for retirement?

Vanguard offers many ways to help you build the savings you'll need for a comfortable retirement.