Specialized Dental Partners 401(k) match, vesting and fees

Participants are immediately vested in their contributions, plus actual earnings (losses) thereon. Vesting in the Plan Sponsor's matching contributions is based on years of continuous credited service. Prior to October 10, 2023, the participants were 20% vested upon two years of service with another 20% vesting each year until the participant was fully vested at six years of service. Effective October 10, 2023, the participants are 20% vested upon one year of service with another 20% vesting each year until the participant is fully vested at five years of service.

Effective October 10, 2023, all newly eligible non-participating employees are automatically enrolled in the Plan at a deferral rate of 3% of eligible compensation with automatic deferral rate increases of 1% per year on the first day of each calendar year, up to a maximum of 10%. Additionally, all participants with no deferral election on file were automatically enrolled in the Plan as of October 10, 2023.

Participants may voluntarily make qualified retirement contributions to the Plan which are deductible by the participants for federal income tax purposes under Section 401(k) of the IRC or after-tax in the form of Roth contributions.

(e) Notes receivable from participants Participants may borrow from their accounts an amount equal to the lesser of $50,000 or 50% of their vested account balance. The participant notes receivable are secured by the balance in the participant's account and bear interest at fixed rates ranging from 4.25% to 9.50%. Loan terms typically range from one to five years but may be extended if used for the purchase of a primary residence. The loans bear interest at a rate based on local prevailing rates as determined by the plan administrator.