About the Plan
Plan Comparison
Click the checkboxes on the left and then press the "View" button to review key similarities and differences between the Retirement Savings Plan and the Deferred Compensation Plan.
| Plan feature | Retirement Savings Plan | Deferred Compensation Plan |
|---|---|---|
| Pre-tax contributions or deferrals | Yes | Yes |
| How much you can contribute or defer before taxes | Maximum deferral is subject to current IRS limits. You may make pre-tax and/or Roth |
IRS deferral limits do not apply. You may defer up to 50% of base pay, and up to 100% of your bonus. |
| Protection for your benefits if Komatsu were to declare bankruptcy | Yes | No |
| Earnings accumulate tax-deferred | Yes | Yes |
| FICA/Medicare taxes withheld on your contributions or deferrals | Yes | Yes. Both employee deferrals and company contributions to the DCP are subject to FICA. |
| Taking a distribution of your account balance | In general, you can take a full or partial distribution of your account balance when you:
|
When you initially enroll in the DCP, you will make a distribution election for your future company contributions to the DCP. In addition, when you first elect to defer base pay and/or bonus, you will make separate distribution elections for each source of deferrals chosen. You can choose to take your account balances in one of the following ways:
Please note that payments will automatically begin six months following separation from service. If you choose to exercise your one-time opportunity to change the distribution election after your initial enrollment, then your form of payment will automatically begin five years and six months following separation from service. Balances from contributions made prior to May 1, 2012 will automatically be paid as a lump sum six months following separation from service. |
| Taxes on your distribution | Your distributions are subject to federal and state income taxes. If you take a distribution before age 59½, it may also be subject to a 10% penalty for early withdrawal. | Your distributions are subject to federal and state income taxes. |
| Rollovers into an IRA or another employer's plan | Yes | No |
| Withdrawals for unforeseeable emergencies | Yes | Withdrawals of your prior contributions can be made if you have an unforeseeable emergency, but company contributions are not available for withdrawal. Withdrawal requests due to unforeseen emergencies will be evaluated on a case-by-case basis and must receive Committee approval. Note that withdrawals from the DCP are subject to more restrictive criteria than withdrawals from the Retirement Savings Plan. Your distribution will be limited to the amount necessary to meet your financial need, and your deferral election for the remainder of the plan year will be cancelled. |
| Loans | Yes | No |