The 401(k) Plan makes it simple and rewarding to save for your future.
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
Bank match.
East West Bank will match 75% of your contributions up to the first 6% of your eligible compensation* per payroll. *Eligible Compensation includes salary, bonus, commissions and/or incentives.
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
As a Full-time associate, you are eligible to enroll in the 401(k) Plan 90 days after your date of hire. Part-time associates are eligible after working 1,000 hours of continuous service by their anniversary date or within a calendar year.
Enroll in the plan
Get started by registering at Empower to submit 401(k) contribution request, review investment fund options, and access plan documents and forms.
Check your progress
Log in to your Empower account to review your 401(k) balance, and make use of the available financial tools to maximize your retirement benefits.
Make updates
Easily change your contribution rate, investment selections, or beneficiary on the Empower website.
YOUR CONTRIBUTIONS
You may contribute up to 80% of your eligible compensation*, up to the annual IRS limits.
if you are under age 50:
In 2024: $23,000
In 2025: $23,500
if you’re age 50 or older this year:
In 2024: $30,500
In 2025: $31,000
which includes an additional $7,500 in catch-up contributions*, made as a separate dollar amount election
*Eligible Compensation includes salary, bonus, commissions and/or incentives.
*These IRS limits include your pretax contributions, Roth after-tax contributions, or a combination of both.
*Beginning January 1, 2025, if you’re age 60 to 63, you can save an extra $11,250 instead of $7,500 in catch-up contributions. Note that the standard limit resumes the year you turn 64.
New 401(k) Feature
After-Tax Contributions
Once you’ve maxed out your annual pretax and/or Roth after-tax contributions, you can make after-tax contributions to save more for your future. When withdrawn, only the earnings on After-tax contributions are taxable.
In 2024, you save up to $69,000 if under age 50 and $76,500 for ages 50 and up less the total contributions from the Bank and yourself.
In 2025, you save up to $70,000 if under age 50 and $77,500 for ages 50 and up less the total contributions from the Bank and yourself.
To start making after-tax contributions, log in to your Empower (hyperlink to www.empowermyretirement.com) account or call Empower at 833-961-5273.
In-Plan Roth Conversion
Besides After-tax contributions, you are allowed to convert all or a portion of your pretax contributions to Roth after-tax contributions within your 401(k) plan. You might benefit from an In-Plan Roth conversion if you expect your tax rate to be the same or higher in future and/or you are interested in owning assets that are a mix of taxable and tax-free withdrawals at retirement.
However, the amount you choose to convert will be taxed as ordinary income and could result in a severe short-term tax burden.
You may submit In-Plan Roth Conversion request by logging into your Empower account, download and complete the In-Plan Roth Conversion Form back to Empower for processing.”
PRETAX VS. ROTH AFTER-TAX VS. 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.
Save more? Consider After-Tax contributions after you’ve maxed out your Pretax and Roth After-Tax contributions.
At least five years have elapsed since your first Roth contribution.
You are at least 59½ or the withdrawal follows death or total disability.
After-Tax contributions – The money goes into your account after taxes are withheld and not eligible for the Bank match. When withdrawn, only the earnings on After-Tax contributions are taxable.
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 401(k) account!
Bank Matching Contributions
East West Bank matches 75% of your 401(k) contribution, up to the first 6% of your eligible compensation, to support your retirement saving efforts. Eligible compensation includes your salary, bonus, commissions, and/or incentives.
Here’s How The Bank Match Works:
For every $1.00 you contribute
The Bank contributes $0.75
And $1.75 goes into your account! (match up to the first 6% of your eligible compensation)
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 Bank.”
You are always 100% vested in your own contributions, including any investment gains and losses on the money. You become vested in Bank 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 401(k) 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 401(k) 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 401(k) 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 Bank).
TOOLS & RESOURCES
Manage Your Account Online
Other site features include:
• Project your retirement income: Use the financial tool to help you determine if you’re saving enough to meet your retirement goals.
• View in-depth account details: Review your current account balance, vested amount, account performance, and more.
• Change your 401(k) contribution amount or investment options or move money between funds.
To get started, go to Empower’s website.