How it Works
401(k) plans center around employee contributions through payroll deductions. Additionally, employers have the option of matching employee contributions, making a Profit-Sharing contribution or both. This plan offers tremendous investment flexibility.

• A 401(k) plan can help provide for retirement.
• Employees can reduce their taxable income and their taxes by contributing up to $15,000 in 2006.
• Employees age 50 or older may be allowed to contribute an additional $5,000, pretax, in 2006.
• Earnings grow tax deferred.
• Early withdrawals in cases of hardship may be permitted.
• Employees have the flexibility to choose from a broad range of investment options.
• Employees can participate in the profits of the company, if the contribution formula is based on profits.
• A loan program may be offered to participants to help meet short-term needs.

What You Should Know About 401(k) Plans
You can determine each year whether your company will make a contribution and how much it will be. If you choose to make matching or profit sharing contributions, you have the option of determining if a vesting schedule should be used. You also decide if loan provisions should be included and whether withdrawals will be allowed in cases of hardship.

Income Limits
Contributions can only be based on the first $220,000 of an employee’s income in 2006. The sum of the employer’s contribution and the employee’s salary deferral contribution cannot exceed $44,000 for 2006 or 100% of the employee’s compensation, whichever is less.
* $49,000 in 2006 if age 50 or older.

Tamarack does not provide tax or legal advice. Please consult your financial advisor or tax advisor for more detailed information, or for advice regarding your individual situation.