401K Retirement Savings Plan

FAQ (Frequently Asked Questions)

Eligibility and Enrollment:

What are the eligibility requirements to participate in Hoss's 401K Plan?

* One year of service
* 1,000 hours in a 12-month period
* 21 years of age

Enrollment is quarterly after eligibility requirements are met (January, April, July, and October). Standard Insurance Company and Hoss's Human Resources Department will notify you when you are eligible and provide you with enrollment information.

How can I enroll?

Newly eligible employees may enroll in the 401K Retirement Savings Plan by three methods:

1. Internet - log onto the http://retirement.standard.com web site, register your account, and complete the enrollment process. There are various tools available to help you decide the best options for yourself.
2. INFOLINE - (800) 858-5420, enter 4-digit pin number (provided on enrollment letters from Standard) and follow instructions given.
3. Complete the Savings Form and Investing Form provided in enrollment booklet.

Please note that if you are interested in participating in the plan, you must complete the Beneficiary Designation for Death Benefits form and submit it to the Human Resources Department.

If you are not interested in taking advantage of this benefit, please elect to contribute 0%, sign and date the Savings Form, and return to the Human Resources Department. We must receive a form back from each eligible employee.

How do I get started to access my account on Standard's web site?

* Visit http://retirement.standard.com.
* The first time you visit, you must register to create a login and password. Select "Register Account" and provide the data requested. You'll need your Social Security Number and 4-digit PIN (from your enrollment letter) to register.
* Click on "Personal Savings Center."
* Enter your login and password.
* Move your mouse over the navigation bar at the top of the page to see additional features available in the site.

The Standard Personal Savings Center allows you to confidentially:

* View your account balance
* View account activity
* View investment performance
* View or change your current investment directives
* Change the deferral you contribute to your account
* Transfer, reallocate, or rebalance your investments
* View loan information, obtain a loan quote, and request a loan
*Calculate how much you need to save to meet your retirement goals
* Complete a risk profile on-line that will help you determine your investment allocation
* Utilize various financial calculators
* View Hoss's Summary Plan Description

What if I cannot remember my login or password?

Call Standard at (800) 262-7111. Once your identity is confirmed, they will provide you with your login or password.

How do I know which profile or accounts to choose?

Before completing the enrollment forms please take time to complete the investor quiz on Page 11 in the enrollment booklet. The quiz may also be found on-line on the http://retirement.standard.com web site under the Enrollment Tab. Completing this quiz will help you to identify the type of investor that you are and recommend a profile.

If you are interested in choosing your own accounts, investment performance information can be found in the enrollment booklets and also on-line under the Enrollment Tab.

How can I get retirement planning advice?

Please contact our broker, John Forney, at Forney Financial Solutions, LLC, at (814) 944-8474.

Contributions:

How can I contribute to my 401K account?

Contributions to your 401K account may be on a pre-tax basis or after tax (Roth) and must be payroll deducted.

What is the difference between Pre-Tax Savings and Roth Savings?

You can now choose what type of money you are contributing to the 401K Plan. With Pre-Tax Savings, the money you place in your 401K account is not federally taxed. This money grows until retirement and then once you retire as you take out the money it is then taxed.

Roth Savings allows you to place federally taxed money into the 401K. The nice thing about this provision is that any earnings from the Roth contributions after a period of 5 years are tax-free.

Basically, think of it as pay the taxes now or pay the taxes later. Please note, many studies have shown that the tax advantages of the Roth only benefit the very young or highly compensated. Please discuss these options with your tax professional.

What is Automatic Enrollment?

Starting January 1, 2009, all 401K eligible employees will automatically be enrolled into the plan with a 1% contribution. Employees will be notified each year and given the opportunity to decline participation. If they do not decline, they will be automatically enrolled. Please note employees that are automatically enrolled have up to 90 days to stop participation and receive a full refund.

What is Automatic Increase?

Starting January 1, 2009, all 401K eligible employees will see their 401K contribution increased by 1% each year up to a maximum of 4%. Employees will be notified of the increase and be given the opportunity to decline the increase. The progression of contribution by 1% annually will stop once you reach a 4% contribution.

What is the maximum I can contribute to my 401K account per year?

In 2010, the maximum you may contribute to your account is $16,500.

Is there a maximum percentage that I can contribute?

You may payroll deduct up to 100% of your income as long as you do not exceed the maximum of $16,500 in 2010.

How often can I change my deferral percentage and how can I do this?

You may change your percentage of deferral as many times as necessary. Simply complete a Savings Form and submit to Sandy Swope. You may also change your deferral on the Standard web site under Update Account.

What is automatic rebalancing?

If you checked the "automatic rebalancing" box on your enrollment form (depending on which you option you chose - quarterly, semiannually, or annually) assets will be transferred in your account so the allocation of your assets in the plan matches how you chose to invest your money (the profile or accounts you chose). Automatic rebalancer makes sure that your asset allocation remains consistent with your goals, regardless of what is happening in the financial markets.

Example: Accounts grow at different rates. You may want 10% of your account to be in a certain investment and it grows to be 15% of your account. The automatic rebalancer will distribute that additional 5% to other investments to move that original investment back to 10% of your account.

Rebalancing will transfer enough money out of your high-performing investment options to your lower-performing options to return the allocation of your plan assets to what you originally desired. This process automatically forces you to follow the recipe for investment success: buy low and sell high.

What is a catch-up contribution?

Once you reach the $16,500 limit and if you are age 50 or older, you can payroll deduct an additional $5,500 for what is called a catch-up deduction.

Please contact Sandy Swope if you would like to take advantage of the catch-up deduction.

Can I roll my 401K account from my former employer into Hoss's 401K plan?

Yes, we can accept rollovers from the following: another 401K plan and other qualified retirement plans, governmental deferred compensation (457) plans, tax-sheltered annuities (TSAs) and IRAs. Rollover money received by the plan will be invested according to your investment directives for new contributions. Please note: if you have received a distribution check from a retirement plan, you must complete a rollover within 60 days of receipt. If the rollover is not completed within this period, the distribution cannot be rolled over and is taxable. It may also be subject to a 10% early withdrawal penalty. Please contact Sandy at 1-800-621-0270 Ext. 3330 for more information and rollover procedures.

Distributions:

How and when can I take money out of my account?

* Normal retirement (age 65)
* Early retirement (age 55); 100% vesting and termination of employment required
* Termination of employment
* Death or disability
* Financial Hardship (The following reasons only are considered for a hardship withdrawal: to pay medical bills, college tuition, to purchase a primary residence, to prevent the foreclosure on a primary residence, burial or funeral expenses for deceased parent, spouse, children, or dependents, or expenses for the repair of damage to your principal residence that would qualify for the casualty deduction under code sec. 165.)

Contact Sandy Swope at 1-800-621-0270 Ext. 3330 if you need to make a hardship withdrawal.

What are my distribution options when terminating employment?

Upon your termination, you will be sent a packet of information outlining your options.

The distribution choices available to you depend on the balance in your account:

$1,000 or less: If your account balance is $1,000 or less, you must withdraw your money from the plan. Your benefit must be distributed as a lump sum or as a rollover to another Qualified Plan or Traditional IRA.

Keep the following in mind:

* Lump sum distributions are subject to 20% federal income tax withholding. State tax withholding may also apply.
* When you file your tax return, you may be subject to an additional 10% penalty for early withdrawal, unless you are age 59 ½ or you terminated service after reaching age 55.
* Please note a distribution charge will be applied.

If your balance is under $1,000, and we do not receive a form from you within 90 days from your date of employment termination, a check will automatically be sent to your last known address.

Over $1,000: For balances of $1,000 or more, you may choose to do one of the following:
* Leave money in the plan.
* Roll it over to another Qualified Plan or a Traditional IRA.
* Take payment in a lump sum. Lump sum distributions are subject to 20% federal income tax withholding. State tax withholding may also apply.When you file your tax return, you may be subject to an additional 10% penalty for early withdrawal, unless you are age 59 ½ or you terminated service after reaching age 55.
* Please note a distribution charge will be applied.

Loans:

Can I take out a loan from my account?

In order to take out a loan, you must have at least $2,000 in your account. The minimum loan amount is $1,000. You may take up to half of your account up to a maximum of $50,000. The loan may be taken up to 5 years unless it's for the purchase of a primary home. In this case, the loan may be taken up to 10 years. There is a one-time $150 loan origination fee that will be deducted from your account.

We recommend that you consider other sources for your loan needs before borrowing from your retirement account.

How do I take out a loan?

On-line: (5-7 days to receive check)

* Visit retirement.standard.com.
* The first time you visit, you must register to create a login and password. Select "Register Account" and provide the data requested. You'll need your SS # and 4-digit PIN to register. (Your PIN was provided on the original enrollment letter. Call (800) 858-5420 to request a new PIN.)
* Click on "Personal Savings Center" and enter your login and password.
* Under the "Account" tab, select Loan Modeling. Use the loan calculator to determine the number of payments and payment amounts you desire.
* When you decide on what you want, click on the "Request This Loan" button and provide the information requested.

On Paper: (7-10 days to receive check)

If you do not have access to the internet, contact Sandy Swope at 1-800-621-0270 Ext. 3330. She will help you calculate loan payments and provide you with a loan application form.

How will I repay my loan?

Loan payments are payroll deducted from your check bi-weekly and sent to Standard Insurance Company. If you would like to pay extra on your loan or pay the loan off early, you may write a check payable to Hoss's Steak and Sea House and mail to Sandy Swope. She will have the check deposited and send the payment over to Standard electronically.

Is there a limit to the number of loans I may take out?

You are permitted to take two loans per calendar year.

What if I terminate employment before the loan is paid off?

If you terminate employment with Hoss's, the loan balance will be deducted from your account before a distribution is made to you. This amount will become taxable income to you for that year.