Overview
Taking steps to ensure your current and future financial security is an important part of your overall well-being. The 401(k) Plan helps you prepare for retirement by offering an easy, tax-advantaged way to save for your future financial needs.
Key advantages at a glance
Company match.
East West Bank will match 75% of your contributions up to the first 6% of your eligible pay you contribute.
Current tax savings.
You’ll pay less in income taxes when you make pretax contributions.
Tax-deferred investment growth.
With pretax contributions, your money has the potential to grow faster.
Wide range of investment choices.
Choose how you want to invest your money.
Convenient payroll deductions.
The 401(k) Plan makes it easy to save for your future.
Eligibility & Enrollment
You are eligible to enroll in the plan 90 days after your date of hire. You may change your contribution rate and investment elections at any time by visiting the Empower website or calling 855.756.4738.
Your Contributions
You may contribute a percentage of your eligible pay up to annual IRS limits. In 2024, the IRS limits allow you to contribute up to:
- $23,000 if you are under age 50
- $30,500 if you’re age 50 or older this year (which includes an additional $7,500 in catch-up contributions, made as a separate dollar amount election).
These limits include your pretax contributions, Roth after-tax contributions, or a combination of both.
Associates can contribute up to 80% of their eligible compensation, up to the IRS limit.
Pretax vs. Roth after-tax: What’s the difference?
The 401(k) Plan gives you the flexibility to save for retirement in a variety of ways. You can make pretax contributions, Roth after-tax contributions, or a combination of the two.
Pretax contributions
The money goes into your account before taxes are deducted, so you keep more of your take-home pay. Then, you’ll owe taxes on both your contributions and any investment earnings when you withdraw your money in retirement (when you may be in a lower income tax bracket).
Roth after-tax contributions
The money goes into your account after taxes are withheld. Then, both your contributions and any associated earnings can be withdrawn tax-free in retirement.*
* In order for Roth earnings to be withdrawn tax-free, you must meet these two requirements:
- At least five years have elapsed since your first Roth contribution.
- You are at least 59½ or the withdrawal follows death or total disability.
Catch up!
It’s not too late to make up for lost time. If you’ll be 50 or older this year, take advantage of the opportunity to contribute up to an additional $7,500 in catch-up contributions.
Bank Contributions
To help you reach your retirement planning goals, East West Bank will also contribute to your account!
Company matching contributions
East West Bank matches 75% of your contributions to the plan, up to 6% of your eligible pay, to support your retirement saving efforts. Eligible pay includes your base salary, bonus, commissions, and/or incentives.
Here’s how the company match works:
Meet the match
Try to contribute at least 6% to take full advantage of the match — otherwise, you’re leaving free money on the table. Log in to your Empower account to increase your contribution rate.
Vesting
Vesting is another way of saying “how much of the money is yours to keep if you leave the company.”
You are always 100% vested in your own contributions, including any investment gains and losses on the money. You become vested in company contributions over time, based on the following schedule:
| Your years of service | Your vested percentage |
|---|---|
| Less than 1 | 0% |
| 1 but less than 2 | 20% |
| 2 but less than 3 | 40% |
| 3 but less than 4 | 60% |
| 4 but less than 5 | 80% |
| 5 or more | 100% |
Name a Beneficiary
It’s important to designate a beneficiary to receive the value of your 401(k) Plan account in the event you die before beginning to receive your benefit. As personal circumstances change, be sure to keep that information up to date. Visit the Empower website to add or change a beneficiary.
Withdrawals and Loans
The money in your account is intended as a long-term investment to help you prepare for your financial needs in retirement. However, under certain circumstances, you may be able to access money from your account before reaching retirement age. For more information, visit the Empower website or call 855.756.4738 (Monday – Friday, 8am – 10pm ET; Saturday 9am – 5:30pm ET) .
Think before you act
If you’re considering taking a withdrawal or loan from your plan account, be sure to think about the impact it may have on your financial future.
- Taking money from your account now may lead to a smaller savings balance when you retire.
- Not only are you taking money away from your retirement savings, but the burden of repaying the loan may make it even harder to get back on track.
- If you take a plan loan, you’ll also lose more money to taxes because the interest payments on your loan are made with money that has already been taxed, and it will be taxed again when withdrawn from your account.
- If you withdraw pretax money from your plan account, in addition to paying current taxes on the money, you may have to pay an additional 10% penalty tax if you are younger than age 59½ (or, age 55 if you have retired or left the company).
Tools & Resources
Manage Your Account Online
Empower's participant website puts the power of retirement planning at your fingertips. Visit the Empower website to get started. Once you’re on the site, log in, or register if you’re a first-time user.
Once you’re logged in, you’ll see the Accounts home page, where you can see a summary of your accounts, account performance, and year-to-date contributions.
Other site features include:
- Project your retirement income: Use the tool to help you determine if you’re saving enough to meet your retirement goals.
- View in-depth account details: See your current account value, vested amount, account performance, and more.
- Change your contribution amount or investment options, or move money between funds. It’s easy to take action online.
To get started, go to Empower's website.