Company: SENEA
Filing Date: 2025-06-27
Form Type: 11-K
Source: 0001437749-25-021427
Chunk: 5

Company: Seneca Foods Corp
Filing Date: 2025-06-27
Form: 11-K
Chunk 5
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Notes Receivable from Participants

Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. The notes are secured by the balance in the participant’s account and bear interest at rates ranging from 4.25% to 9.50%, which are commensurate with local prevailing rates as determined by the Plan. Principal and interest is paid ratably through payroll deductions. The term of the loan should not exceed five years except in the case of a loan used to acquire a dwelling unit that is to be the principal residence of the participant.

Payment of Benefits

Participants or their beneficiaries may receive the vested interest of their Plan account through a distribution of benefits upon retirement, death, termination of employment, or qualifying withdrawal. Hardship withdrawals are permitted by the Plan. In-service distributions may be made to a participant who has not separated from service provided they are 59 ½ or older. Benefit payments may be made in the form of a lump sum distribution. Participants who terminate employment with a balance of less than $7,000 may receive an automatic lump sum distribution of their balance.

Forfeited Accounts

At December 31, 2024 and 2023, forfeited non-vested accounts totaled $49,390 and $26,380, respectively. These accounts will be used to reduce future employer contributions. During the years ended December 31, 2024 and 2023, forfeitures of $26,380 and $17,217 were used to fund employer contributions, respectively.

Reclassification

Certain prior period amounts have been reclassified for consistency with the current year presentation. This reclassification had no effect on the reported net assets or changes in net assets. Investments in collective investment trusts were reclassified from being valued at net asset value per share as a practical expedient to fair value to Level 2 within the fair value hierarchy as of December 31, 2023.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The financial statements of the Plan are prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

Use of Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, and the disclosure of contingent assets and liabilities.