Aqua America, Inc. 401(k) Plan
Notes to Financial Statements
December 31, 2018 and 2017
Employer Performance Contributions
The Company may, at its discretion, make an employer performance contribution on behalf of eligible participants if certain established
performance goals are achieved. Such performance contributions are to be made to the plan in the form of cash, Company stock, or any combination thereof. As of January 1, 2018, any performance contributions will be initially invested in Company
stock. The Company did not make any performance contributions during 2018 and 2017.
Excess Contributions
No such reimbursements for excess contributions were required based on the testing results of the Plan year ended December 31, 2018. In
order to satisfy the relevant nondiscrimination provisions of the Plan for the year ended December 31, 2017, the Plan reimbursed $63,022 in excess contributions to select participants prior to the Internal Revenue Service (IRS)
deadline for correction of excess deferrals of April 15, 2018. The excess contributions are recorded as a liability and as a reduction of participant contribution.
Year-End
Corporate Contribution
The Company may make a discretionary
year-end
corporate contribution, of up to 3% of an
employees eligible compensation, for participants of Groups 8 and 9 who were employed on the last day of the Plan year. This contribution will be made in cash into participant-directed accounts. The Company made
year-end
corporate contributions for 2018 and 2017 in the amount of $2,385,798 and $2,078,313, respectively.
Other Contributions
The Plan maintains an Administrative Budget account funded by the Plans Trustee. The funds in the account are treated as Plan assets and
must be used only for payment of permissible Plan expenses or allocation to participants. The Administrative Budget funds are invested in the T. Rowe Price Prime Reserve Fund. The T. Rowe Price Prime Reserve Fund is not an available investment
option for plan participants. All funds utilized from this account are treated as administrative expenses on the Statements of Changes in Net Assets Available for Benefits. Contributions to the Administrative Budget account were $158,226 and $80,222
for 2018 and 2017 respectively. Administrative Budget account funds utilized amounted to $157,478 and $38,352 during 2018 and 2017, respectively. The balance in the Administrative Budget account was $50,264 and $48,411 as of December 31, 2018
and 2017, respectively.
Participants Accounts
Each participants account is credited with the participants contribution and allocations of the Companys contribution and
plan earnings or losses. Allocations are based on participant contributions or account balances, as defined by the plan document. The benefit to which a participant is entitled is the benefit that can be provided from the participants vested
account.
Vesting
Each participant will always be 100% vested in the balances in their deferral contribution, voluntary contribution, discretionary
contribution, employer performance contribution, and rollover contribution accounts. For Plan year 2018, Group 8 and Group 9 covered employees become 100%
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