What is the San Diego Electrical Annuity Plan?
The San Diego Electrical Annuity Plan is a 401(k) plan, a tax-deferred retirement plan that is qualified under Section 401(k) of the Internal Revenue Code. Federal law governs the operation of the plan and the plan’s rules for participation, timing and amount of contributions, investment of funds, and withdrawal or distribution of benefits. Each employee can elect to reduce his or her wages by a certain amount (defer), and have that amount contributed to the plan. The deferred amount does not appear as taxable income on the employee’s W-2 statement. Thus, the contributions are not subject to current federal or state income tax until the employees receive the money from the plan.
