Riverview Financial Corporation 401(k) Retirement Plan
Notes to Financial Statements
December 31, 2020 and 2019
Conditions for Distributions Upon Severance of Employment: If employment terminates for reasons other
than death, disability or early or normal retirement, the employee will be entitled to receive only the vested percentage of their account balance. An employee may elect to have their vested account balance distributed to them as soon as
administratively feasible following their termination of employment. However, if the value of the vested account balance does not exceed $5,000, then a distribution will be made regardless of whether the employee consents to receive it.
Automatic IRA Rollover: If a mandatory distribution is being made because the employees vested interest in the Plan exceeds $1,000 but does not
exceed $5,000, then the Plan will rollover the distribution to an IRA if no affirmative election to either receive or roll over the distribution was made by the employee. The IRA provider selected by the Plan will invest the rollover funds in a type
of investment designed to preserve principal and provide a reasonable rate of return and liquidity. Or the employee may transfer the IRA funds to any other IRA of their choice.
In-Service Distributions: Plan participants may be entitled to receive an
in-service distribution. This distribution is not in addition to the participants other benefits and will therefore reduce the value of the benefits that will be distributed at retirement. This
distribution is made at the election and will be made in accordance with the forms of distributions available under the Plan.
The Plan is
subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
The Trustees are responsible for oversight of
the Plan. The Benefits Committee determines the appropriateness of the Plans investment offerings, monitors investment performance and reports to the Plans Trustees.
Contributions
Participants can
elect to defer a portion of their compensation as a contribution to their 401(k) accounts in an amount ranging from 0% to 80% of their compensation, as defined, on a pretax basis, after-tax basis, Roth basis,
or a combination subject to Internal Revenue Service (IRS) limitations. Participants who are over the age of 50 can elect to make catch-up contributions, subject to Internal Revenue Code limitations.
Additionally, participants may contribute or rollover amounts representing distributions from other qualified plans (rollover). Participants direct the investment of their contributions into various investment options offered by the Plan.
Effective for Plan years beginning after July 1, 2019, the Plan included an automatic salary deferral feature. Riverview will
automatically withhold 4% of an employees compensation from their pay each payroll period and contribute that amount to the Plan as a pre-tax 401(k) deferral. The automatic deferral amount will increase
by 1% of compensation up to a maximum of 8% of compensation while the participant is still employed by the Company. Such an increase will be applied as of the second period that begins after the period in which the initial deferral was withheld and
will occur as of the beginning of each subsequent Plan Year. The automatic deferral provision applies to all Plan participants, except those who have a salary deferral agreement in effect on the automatic deferral provisions effective date.
The Company makes a safe harbor match contribution each payroll period in an amount equal to 100% of the amount contributed by the participant
up to 4%. Participant contributions in excess of 4% of their compensation are not matched. Participants are eligible to receive this match only if they are making 401(k) contributions. The contributions are held in a safe harbor matching
contribution account.
The Company also, at its discretion, may make an annual profit sharing contribution based on the Companys
financial performance. The allocation of the profit sharing contribution is based on each eligible participants compensation in proportion to the compensation received by all eligible participants during the plan year. The Company did not make
a profit-sharing contribution for 2020.
Participant Accounts
Each participants account is credited with the participants contributions, the Companys safe-harbor match, as well as
allocation of the Companys discretionary profit sharing, and transitionary contributions (when applicable), and an allocation of Plan earnings or losses (including unrealized appreciation or depreciation of Plan assets). Participant accounts
are charged with an allocation of administrative expenses that are paid by the Plan. Allocations are based on participant earnings, account balances, or specific participant transactions, as defined. The benefit to which a participant is entitled is
the benefit that can be provided from the participants vested account.
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