401(k) Plan Benefits Open Enrollment

Transcription

1 401(k) Plan 2012 Benefits Open Enrollment

2 Why should an individual participate in the 401(k) plan? Participating in the 401(k) plan is an easy and convenient way for you to save for retirement. Social Security benefits may be limited or not available in the future. The Company matches your contribution. This is FREE money to you. The Company also offers a discretionary match at the end of the year based on profitability. Prior to 2009, the average discretionary match was equal to 11% of the employee s contribution to the plan. Again, this is FREE money to you. Contributions to the Plan reduce your taxable wages and income taxes.

3 Who is eligible to participate in the 401(k) plan? You are eligible to participate in the 401(k) Plan if you are: A regular full-time or part-time employee working more than 20 hours per week. New employees to the Company are eligible to participate the first day of the quarter after hire date. Quarterly entry dates are January 1, April 1, July 1, and October 1.

4 What are the features of the 401(k) Plan? Employees can defer between 0% and 70% of salary each pay period. The company match is 35% up to the first 6% of salary. This match is posted each pay period. The Company offers an annual discretionary match based on profitability. There are 16 different funds and 10 different asset allocation models to choose from. Loans can be taken from the plan Self-Directed brokerage accounts are available. Roth (after tax) 401k contributions to the Plan

5 How can an individual contribute to the 401(k) plan? 2012 Contribution Limits $17,000 $5,500 catch up provision for employees age 50 and above

6 How to enroll in the 401(k) plan? Login to the Daily Access website at If you are enrolling in the plan for the first time, click on Participants and then click on Enroll Now in the New Users box. Follow the prompts to complete your enrollment. If you are a return user to the web site, click on Participants and then enter your user name and password. Once in the web site, click on Modify Account. You will then be able to change your contribution rate, investment elections or both. Changes can be made at anytime and deferral changes will be updated on the first payroll of the next quarter.

7 How to apply for a loan from the 401(k) Plan? Log in to the Daily Access website at In the blue tool bar under Retirement Opportunities, click on Loan and then click on Request. Follow the instructions to model and apply for a loan. Print out the loan documents and sign them. If you are married, your spouse will need to sign the documents and have signature notarized. Deliver all the signed loan documents along with documentation for the loan funds to Kevin Lammers in Human Resources. Please allow ten (10) business days for the check to arrive after submitting all of the completed loan documents. Loan deductions will be taken biweekly from payroll. Loan deductions can be increased to accelerate the payoff of the loan. The loan can be paid off in full at anytime without penalty. If you terminate employment and have an outstanding loan balance, you have thirty (30) days to pay off the loan or the balance will be treated as a taxable distribution in the year of employment termination.

8 How to select my investments? Login to the Daily Access web site at On the blue tool bar under Retirement Opportunities, click on Modify Account and then click on Modify Investment Elections Place percentage amounts in the boxes for the funds you would like to elect. Make sure the total elections equal 100%. When completed, click on Submit

9 What is the best investment for me? If you don t how to select the best fund(s) for your needs, you have two options. First, you can complete an asset allocation questionnaire. There are two questionnaires: one for the Symmetry models and another SAA models in the plan. Fill in the questionnaires in order to find the best fund(s) for you needs. Second, contact a Securities America registered representative and ask for advice.

10 How often can my Deferral Percentage be changed? Deferral percentages can be changed quarterly. The quarterly dates are: January 1 April 1 July 1 and October 1 Deferral changes can be made online at anytime and will be updated at the beginning of the next quarter.

11 How to set up a Self Directed Brokerage Account? Contact Kevin Lammers in Human Resources for a brokerage account application. Return the completed brokerage account application to Kevin in HR. The account will be established at National Financial Services (NFS) and linked to the DailyAccess account When completed, log into the DailyAccess website at Click on Modify Account in the blue tool bar under Retirement Opportunities. Click on Fund to Fund Transfer to move the money from existing investments to the brokerage account. When the money is in the brokerage account, trades to buy securities can take place. Please remember that transactions costs in the brokerage account are the expense of the employee. When moving money back to the core plan, money must be in cash in the brokerage account before moving the money back to the core plan.