October 4, 2003
Last Revised: May 23, 2012 4:50 PM
For the entire history of Vibrant Life we have NEVER had any pension plan or medical benefits. That is now changing -- with the implementation of the incentive pay system described HERE.
The central core of this new savings opportunity is that all costs for this plan will be taken out of the "salary sum" which is used to make all payments to staff.
Further, the plan starts with a standard 401k plan which is very popular in much of the nation, and has standard law and administration to support it. Next, the plan will, like all 401k plans, allow for voluntary membership by each staff member. For any staff member who activates the approved Vibrant Life 401k plan, the Company will make a contribution. All money paid into this 401k savings plan carries a deferment of taxes as well as a penalty for early withdrawal.
A copy of the full law governing the 401k plan is HERE. The top of that same page (here) shows other articles that explain the workings of a 401k plan.
This plan will be offered only to people who also take part, in even an agreed partial way, the Company Incentive Plan -- described here.
Some part of that salary sum will be used to pay whatever fixed (non-incentive) wages that exist; some portion of that salary sum will be used to pay the various taxes and fees related to employment (both the employee and the employer portions); some part of that salary sum will be used to make Company contributions to the individual 401k plans where the person qualifies for a Company contribution.
The first thing to know about a 401k plan is that is really "free money."
You can contribute up to $15,500 per year into your own 401k plan. That much is allowed for 2007, and the amount increases for 2008. This maximum is allowed whether the Company makes any contribution or not, although the plan used by the Company can have certain restrictions allowed by law.
One of the reasons why employers like these 401k plans is that they usually include a restriction that the money contributed by the employer, into YOUR 401k plan, is not yours in any way until you have remained with the company for some certain number of years. This plan gives employers a legal way of giving you an incentive to remain an employee for at least a certain number of years.
This money is deducted from your regular pay-check -- in our case it would be deducted by the payroll company. Vibrant Life does NOT process payroll checks and does not handle the withholdings and payments of your taxes to the government.
Tax laws have changed to make the 401K even more attractive: