401(k) Retirement Plan
The American Lung Association 401(k) Plan is a Defined Contribution Plan that allows for employee and employer contributions.
Contributions
Employees:
You can contribute up to $23,500 in 2025.
If you are age 50-59 or 64 or older, you may contribute up to an additional $7,500 as a “catch-up” contribution. If you are age 60-63 by the end of the 2025 taxable year, you can contribute up to the greater of $10,000 or 150% of the regular catch-up contribution limit, which is $11,250 (7,500 x 1.5).
You can begin contributing to the retirement plan on the first day of the month following one month of employment. The plan allows both pre-tax and Roth (after-tax) contributions.
If you do not make an election, you will be automatically enrolled at a 4% pre-tax contribution rate. Each July 1, the contribution rate will automatically escalate by 1%, up to a maximum contribution rate of 6%.
Employer:
Matching Contributions: The American Lung Association will match 100% of each dollar you contribute, on the first 4% of pay that you defer to the plan. If you don’t make elective deferrals, you will not receive any matching contributions.
Non-Elective Contributions: The American Lung Association will make annual non-elective contributions on a discretionary basis. These contributions will be based on years of service and earned compensation for the plan year. To receive this contribution, you must:
- be eligible to participate in the Plan
- have satisfied the eligibility and entry date requirements
- be an active employee on the last day of the plan year (June 30)
Vesting
Vesting refers to your ownership of the money in your 401(k). You will be 100% vested in the employer match after two years of service. (You are always 100% vested in your contributions to the plan.) There is a five-year graded vesting schedule for the non-elective employer contributions.
| YEARS OF SERVICE | <2 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| % Vested | 0% | 40% | 60% | 80% | 100% |
More Information
- Once enrolled in the plan, you can make changes to your contributions at any time.
- Fidelity Investments has many different investment options for you to choose from, along with tools and resources you can use to determine which options best meet your investment objectives.
To enroll or change your contribution rates or investment elections, visit netbenefits.com or call 1 (800) 835-5097.