401(k) Retirement Savings Plan
How the Plan Works
Overview | Eligibility
| How The Plan Works | Payment
Options | 403(b)
If you are eligible to participate in the 401(k) Retirement Savings Plan, you
may begin contributing to your account as of your date of hire. Your contributions
are matched, up to a maximum match amount which is a percentage of your compensation.
You are always 100 percent vested in your own contributions. You must meet the
vesting service requirement of three years to receive your employer matching contributions.
While in the 401(k) Retirement Savings Plan, you will receive a quarterly statement
from Diversified Investment Advisors. This statement will show the benefit available
to you as well as provide information on the performance of your investment options.
More On the 401(k) Retirement Savings Plan
Employee Contributions
Employer Matching Contributions
Vesting
Investment Options
Receiving Your Benefit
Loans and Withdrawals
Transferring Funds
Employee Contributions
You can contribute from 1- 75 percent of your compensation
into the 401(k) Retirement Savings Plan, provided your contribution doesn't exceed
the IRS
Limit. Additionally, employees fifty years and older may be eligible for special
"catch-up" contributions (see this link
for more information.) Your contributions are deducted from your paycheck, before
taxes are taken out - providing you with additional savings.
Examples
Susan earns $35,000 and contributes 5%, or $1,750 per year to the 401(k) Retirement
Savings Plan. This would equal a $67 contribution each pay period.
$35,000 x 5% = $1,750
$1,750 / 26 pay periods = $67
Andy earns $50,000 and wants to contribute 23% to the 401(k) Retirement Savings
Plan. His contribution would equal $11,500. However, the maximum he can contribute
per year is $11,000 or $423 per pay period. Therefore, Andy would be able to contribute
a maximum of 22% of his salary.
$50,000 x 22% = $11,000
$11,000 / 26 = $423 |
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Employer Matching
Contributions
PLEASE NOTE: THE 403(b)/401(k) EMPLOYER MATCHING CONTRIBUTIONS HAVE BEEN TEMPORARILY SUSPENDED EFFECTIVE JULY 1, 2009. THE INFORMATION BELOW RELATED TO EMPLOYER MATCHING CONTRIBUTIONS REFLECT THE PROVISIONS OF THE EMPLOYER MATCHING CONTRIBUTIONS PRIOR TO THE SUSPENSION. CLICK HERE TO OBTAIN IMPORTANT INFORMATION REGARDING THE TEMPORARY SUSPENSION.
To receive the employer matching
contributions, you must be contributing to the 401(k) Retirement
Savings Plan. Any amount you contribute up to $500 will be matched
dollar-for-dollar. If you contribute more than $500 to the Plan,
Trinity Health will contribute an additional match of $.50 for
every $1.00 you contribute up to a maximum match amount. Click
here to use the match calculator.
All employer matching contributions are credited to your
401(k) plan every quarter. You can direct where you want the
match to be invested.
Example 1
Tony earns $25,000 a year and currently contributes 1% of pay to his 401(k) Retirement
Savings Plan account. As such, Trinity Health would contribute the following:
Tony's voluntary contribution
$25,000 x 1% = $250 per year
(about $9 per pay period)
Trinity Health's matching contribution (dollar-for-dollar)
$250 x 100% = $250 per year
Total account contribution
$250 + $250 = $500 per year
Tony just doubled his money! However, if Tony saved 2% of pay or $500, he would
receive the maximum dollar-for-dollar employer matching contribution of $500.
This would increase Tony's total account contribution to $1,000 per year (Tony's
$500 + $500 match).
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| Example 2
Carrie earns $40,000 a year and is eligible for a maximum match of 3% of compensation
or $1200. Her 401(k) Retirement Savings Plan contribution is 10% of pay. Her account
contribution would be:
Carrie's voluntary contribution
$40,000 x 10% = $4,000 per year
(about $153 per pay period)
Trinity Health's matching contribution (dollar-for-dollar)
Dollar-for-dollar on first $500 plus 50% on balance up to a maximum of 3% of Carrie's
compensation.
$40,000 x 3% = $1,200 maximum match
$500 x 100% =$500
$1,400x 50% = $700 per year
Total account contribution
$4,000 + $500 + $700 = $5,200 per year
Carrie receives Trinity Health's maximum matching contribution. Not only does
she receive the dollar-for-dollar match, she also receives the additional match
of $.50 for every $1.00, up to the maximum of 3% of compensation. |
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Vesting
When vested in your 401(k) Retirement
Savings Plan account, you can take your account balance with
you when you retire or terminate. You are always 100 percent
vested in the amount you contribute. However, you must complete
three years of vesting service
to become vested in any employer matching contributions.
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Investment Options
Through the 401(k) Retirement
Savings Plan you have a variety of investment
options to choose from. You also have access to a
Schwab self-directed
brokerage account to purchase various mutual funds.
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Receiving Your Benefit
Upon retirement or termination of employment, you will need to complete a distribution
form to request payment of your benefit. Contact Diversified Investment Advisors
at 800.394.5240 for further information.
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Loans and Withdrawals
Your 401(k) Retirement Savings Plan is intended for your retirement. However,
there may be times when you need to access your account through a loan or a withdrawal,
provided you meet Plan requirements. Keep in mind that this will impact your total
retirement income (even if you pay a loan back) because you miss out on compounding
interest, dividends, and potential capital appreciation. Contact Diversified Investment
Advisors at 800.394.5240 for further information.
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Transferring Funds
You may roll over, on a tax-free basis, a qualified plan account from another
employer. Contact Diversified Investment Advisors at 800.394.5240 for further
information.
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