BMO 401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 2023 and 2022
NOTE 1 |
DESCRIPTION OF THE PLAN (continued) |
Contributions (continued)
An election made by the participant may provide for an automatic increase either
in the amount or rate of his or her 401(k) contributions.
BFC makes 401(k) matching contributions to the participants accounts each pay
period, dollar for dollar, up to the first 5% of participants annual eligible pay (as defined), to the maximum annual compensation limit permitted by the Internal Revenue Service (the IRS; $330,000 in 2023 and $305,000 in 2022). Participants
are immediately eligible to receive BFCs matching contributions.
BFC makes employer non-elective
contributions to the participants accounts each pay period, equal to 2% of participants annual eligible pay (as defined), to the maximum annual compensation limit permitted by the IRS ($330,000 in 2023 and $305,000 in 2022). Participants
are immediately eligible to receive BFCs non-elective contributions.
Participant Accounts
Each participants account is credited with his or her contributions, including eligible rollover contributions, allocations of the employer
contributions and Plan earnings. Allocations are based on participant earnings or account balances, as defined. Each participant may direct the investment of his or her account balance among the available investment options, in accordance with the
provisions of the Plan. Participants who do not make an investment election are automatically invested in a Qualified Default Investment Alternative (QDIA), an age-appropriate target date fund. A participant
shares in the earnings and losses of the investment options in the ratio that his or her account invested in a fund bears to the total of all participants accounts invested in that fund.
Vesting
All participant and employer
contributions are fully vested at all times, except for the employers non-elective contributions, which require participants to attain three years of credited service to be fully vested. The Plan
provides that a participant vests fully in the non-elective contributions upon the date such participant ceases to be employed due to certain circumstances, such as long-term disability, death, or involuntary
termination due to a reduction in workforce.
Forfeitures
If a participant was not vested in his or her non-elective contribution account when their employment
terminated, the balance of the participants non-elective contribution at the time of termination shall be forfeited upon the earlier of the time the participant receives a distribution of the entire non-forfeitable portion of all his or her account balances or the date the participant incurs five consecutive one-year breaks in service. Forfeitures shall be applied to pay
Plan expenses as permitted or to reduce future non-elective contributions. The unallocated forfeitures balance as of December 31, 2023 and 2022 were $7,344,495 and $0 respectively, and forfeitures used to
reduce Company contributions were $1,278,427 for 2023 and $1,180,804 for 2022.
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