401k Enrollment Slideshow


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401k Enrollment Slideshow

  1. 1. 401(k) Enrollment<br />Presented by:<br />
  2. 2. Contents<br />Your Plan Features<br />The Importance of Planning for Retirement<br />Enrollment<br />How to Rollover Previous 401(k) Accounts<br />Accessing Your Account<br />
  3. 3. Plan Summary<br />Entry Requirements<br />1 year of Service – 1000 hours or more<br /> Minimum age of 21 <br />Plan entry on July 1st and January 1st<br />Elective Deferral Contributions<br /> Maximum contribution: 100% of your salary up to $16,500<br />Over the age of 50, may make a catch-up contribution of an additional $5,500<br />Employer Match<br />For the current plan year: 100% up to 3% of your salary <br />Vesting<br />You are always 100% vested in your salary deferral savings contributions. <br />0-1 years of service 0% is vested <br />1-2 years of service 20% is vested<br />2-3 years of service 40% is vested<br />3-4 years of service is 60% vested<br />4-5 years of service is 80% vested <br />5 years or more of service 100% is vested. <br />Your account becomes 100% vested at death, disability and retirement. <br />
  4. 4. Plan Summary<br />Investment Changes<br />Can be made at anytime by phone or online at www.gwrs.com<br />Withdrawals<br />Attainment of age 59 ½<br />Death & Disability<br />Termination of Employment * Tax penalties may apply<br />Hardship Withdrawals<br /><ul><li>Proof of Cause & Amount Hardship that meet IRS guidelines.
  5. 5. Salary Deferrals suspended for six (6) months from the date of distribution. </li></ul>Loans<br />Minimum loan amount $1,000 <br />Maximum $50,000 or 50% of vested account balance<br />Only one loan at a time <br />See your packet for a Full Plan Summary<br />
  6. 6. Nest Egg Basics<br />Earn a dollar, keep a dime.<br />For a potentially higher return, diversify among professionally managed investments.<br />Stick to a simple, long-term plan.<br />
  7. 7. WHY SAVE IN A 401k?<br />Save Taxes: No current tax on amount saved and investment gains are tax-deferred<br />Convenience of Saving Through Payroll Deduction<br />Attractive Investment Choices<br />Flexibility<br />
  8. 8. WHEN YOU RETIRE. . . <br />Paycheck Stops<br />To maintain a comfortable lifestyle, most people live on:<br />Social <br />Security<br />Retirement <br />Plans <br />401(k) or IRA’s<br />Personal <br />Savings<br />=<br />Your Retirement <br />Income<br />
  9. 9. ($6000)<br />SOCIAL SECURITY INCOME<br /> = Benefit as % of final pay = Shortfall<br />100% <br />80% <br />60% <br />40%<br />20%<br />Current Pay:$15,000$25,000$35,000 $50,000 $100,000<br />WG&L Pension & Benefits Fact Book:For personal report call SS Office at 1-800-772-1213.<br />Assuming retirement in year 2020 and pay raises follow national average.<br />
  10. 10. Contributing: What does it cost?<br />$30,000 Salary<br />-6% Contribution ($1,800)<br />$28,200 Taxable Income<br />$7,050 Taxes Owed<br />$21,150 Take Home Pay<br />$30,000 Salary<br />-0% Contribution <br />$30,000 Taxable Income<br />$7,500 Taxes Owed<br />$22,500 Take Home Pay<br />Difference $1,350.00<br />$7,500 (Taxes Owed 0% Contribution)<br />-7,050 (Taxes Owed 6% contribution)<br />=$450 (Current Tax Savings)<br />Based on 25% tax bracket<br />
  11. 11. SAVINGS EXAMPLE<br />62% More Income <br />By saving in <br />Your 401(k) Plan<br />Assumes 25% tax bracket and 3% non-elective contribution<br />
  12. 12. ADVANTAGES OF SAVING EARLY<br />Assume $1000 saved annually ($83/month),<br />10% annual growth rate<br />Saved from age 21 to 31<br />Saved from age 31 to 65<br />Total Saved<br />$10,000<br />$34,000<br />Investment Gain<br />$437,880<br />$236,024<br />$ at age 65<br />$447,880<br />$270,024<br />
  13. 13. Asset Allocation The Primary Factor in Performance Variability<br />Spreading Your Risk through Diversification<br />Security Selection 4.6%<br />Market Timing 1.8%<br />Other 2.1%<br />Asset Allocation<br />91.5%<br />Source: Brinson, Singer, and Beebower (1991) - Financial Analysts Journal, May/June 1991.<br />
  14. 14. What is Asset Allocation?<br />Asset allocation is the process of developing a diversified investment portfolio by mixing different assets in varying proportions.<br />Stocks<br />Bonds<br />Cash<br />
  15. 15. SUMMARY<br />To build a nest egg, you must save.<br />401(k) offers<br />Significant tax advantages<br />Company match/contribution!<br />Attractive investment choices<br />Flexibility<br />Convenience<br />It’s important to start early - NOW!<br />Review your enrollment package.<br />Complete & return enrollment form.<br />
  16. 16. Steps to Enrollment<br />Enrollment Forms<br />Deciding how much to save<br />Select Beneficiaries<br />Select your Investments<br />
  17. 17. Enrolling in your Plan – Salary Deferral Agreement<br />The forms you need are after page 21 in your enrollment kit.<br />All Newly Eligible Employees must make a decision to participate or not.<br />Section I: Employee Information: Complete ALL requested information<br />Section II: Salary Deferral Agreement <br />Section III: Payroll Information: Choose the amount you wish to defer to your retirement plan OR Choose to decline participation into the plan.<br />SIGN AND DATE THE FORM<br />SIGN<br />
  18. 18. Enrolling in your Plan – Enrollment Form<br />All Newly Eligible Employees must make a decision to participate or not.<br />Section I: Employee Information: Complete ALL requested information<br />Section II: Payroll Information: Choose the amount you wish to defer to your retirement plan OR Choose to decline participation into the plan<br />Section III: Choose to enroll in a managed account program (don’t check the box) OR Choose to select your own investments (check the box)<br />
  19. 19. Enrolling in your Plan – Enrollment Form<br />If you choose to select your own investments, this page includes all your investment options. After completing your risk tolerance questionnaire and reviewing the fund options, select the investment options. All options selection should equal 100%. <br />
  20. 20. Enrolling in your Plan – Enrollment Form<br />SIGN AND DATE THE FORM<br />SIGN<br />
  21. 21. Enrolling in your Plan – Choosing a Beneficiary<br />Section A: Fill out your Information.<br />Section B: Choose your Primary and Contingent Beneficiary/ies<br /> If you are married, your spouse must be your primary beneficiary (100%) unless your receive their written consent that you may choose otherwise (in section C). <br />Section C: Sign and Date where indicated<br />SIGN<br />
  22. 22. Enrolling in your Plan – Choosing a Beneficiary<br />To Designate a Beneficiary other than your spouse, use section C of page 2. <br />You must have your spouse’s written consent. Your spouse must sign this form in front of a Notary Public.<br />Spouse SIGN<br />Witness<br />SIGN<br />
  23. 23. Select your Investments<br />Use this guide to help you decide which investment program is right for you. (page 3 of your enrollment booklet)<br />Answer Each Question<br />
  24. 24. Select your Investments<br />Based on your score…Which program works for you? <br />Should you consider enrolling into the managed account services?<br />Would you like to make your own decisions with some guidance from an advisor?<br />Would you rather choose your investments yourself?<br />
  25. 25. Select your Investments<br />Do-It-For-Me <br />Managed account service selects your investment options. $25.00 Annual Fee. <br />Managed account balance & Associated Annual fee:<br />0-100,000 0.55%<br />100,000-250,000 0.45%<br />250,000-400,000 0.35%<br />400,000+ 0.25% <br />Help-Me-Do-It<br />Online Guidance at www.gwrs.com at no cost.<br />Online Investment Advice = $25.00 annual fee.<br />Fund expenses (noted in enrollment booklet).<br />Do-It-Myself<br />You know what you want and you feel confident in choosing the direction of your retirement account with the information you’ve been given.<br />No advising fee. <br />Fund expenses (noted in enrollment booklet).<br />
  26. 26. Select your Investments<br />Answer the questions and score your answers to determine your risk tolerance.<br />Take a look at the next page to see what your recommended asset allocation is.<br />
  27. 27. Select your Investments<br />Allocations for your suggested portfolio appear on page 6. These allocations will serve as a guide. The final choice is yours and you should feel comfortable with your individual allocations.<br />
  28. 28. Selecting your Investments – Choosing your Asset Allocation<br />If you choose to select your investment options, make your selections on page 2 of your enrollment form. Once complete, all choices should total 100%. <br />
  29. 29. Enrolling in your plan - Turning in Your Paperwork <br />If electing to participate submit the following forms to your Human Resources Contact:<br />Salary Deferral agreement<br />Pages 1-3 of the Enrollment Form<br />Beneficiary Designation form<br />MAKE SURE YOU HAVE SIGNED EACH FORM APPROPRIATELY<br />
  30. 30. Enrolling in your plan - Turning in Your Paperwork <br />If you elect NOT to participate, submit the signed Salary Deferral Agreement to your Human Resources officer.<br />MAKE SURE YOU HAVE SIGNED EACH FORM APPROPRIATELY<br />
  31. 31. Rollover Other Retirement Plans<br />Consolidating your old retirement plans into one plan makes your retirement savings easier to manage. <br />To Rollover other funds, use the Incoming Direct Rollover form.<br />SIGN<br />Turn this form into your enrollment contact<br />
  32. 32. Enrollment Contact Instructions<br />Forward completed enrollment or declination forms <br />by Friday June 24th, 2011 to your human resource representative or directly to Elisabeth Campbell at North Star Financial Group.<br />Fax: 877-203-4256<br />Email: ecampbell@northstarfg.com<br />Phone: 828-323-8777 ext 206<br />Mail: North Star Financial Group<br /> Attn: Retirement Plan Department<br /> 101 Government Ave SW<br /> Hickory, NC 28602 <br />If you need assistance from a financial advisor, please call 828.323.8777 and someone will be glad to speak with you.<br />
  33. 33. Accessing Your Plan<br />www.gwrs.com<br />Plan Number 939864-01<br />Click on Participant Log In (located on right side of screen)<br />Insert Username<br />Insert Password<br />If this is your first time logging in, click on first time visiting located below Username and Password<br />
  34. 34. Ongoing Service<br />www.gwrs.com<br />Account access<br />Financial Planning calculators<br />Planning Information<br />All Benefits Provided by Beaver Sports Properties<br />Great West Participant Hotline: (800) 338-4015<br />