Retirement plans

9 Months Ended

Sep. 30, 2023

Retirement plans

Retirement Plans

Note 7. Retirement plans

The Mayville Engineering Company Inc. 401(k) Plan (the 401(k) Plan) covers substantially all employees meeting certain eligibility requirements. The 401(k) Plan is a defined contribution plan and is intended for eligible employees to defer tax-free contributions to save for retirement. Employees may contribute up to 50% of their eligible compensation to the 401(k) Plan, subject to the limits of Section 401(k) of the Internal Revenue Code.

As of January 1, 2023, the Company implemented an employer match program to the 401(k) Plan. The Company now provides a 50% match for employee contributions, up to 6%. For the three and nine months ended September 30, 2023, the Company’s employer match expense was $933 and $2,577, respectively. Additionally, the 401(k) Plan provides for employer discretionary profit-sharing contributions and the Board of Directors may authorize discretionary profit-sharing contributions (which are usually approved at the end of each calendar year). For the three months ended September 30, 2023 and 2022, the Company’s estimated discretionary profit-sharing expense (credit) was $0 and ($123), respectively. For the nine months ended September 30, 2023 and 2022, the Company’s estimated discretionary profit-sharing expense was $0 and $1,351, respectively.