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Your Journey Toward Retirement Insert Your Logo HERE.

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Presentation on theme: "Your Journey Toward Retirement Insert Your Logo HERE."— Presentation transcript:

1 Your Journey Toward Retirement Insert Your Logo HERE

2 We are a coordinated team of trusted, experienced professionals working toward your success! About Retirement Plan Consultants LLC

3 About Your Financial Advisor Insert Background about your firm or yourself 3

4 Highlights of Your Organization’s Retirement Plan

5 Eligibility Who Is Eligible for the Plan? –You can join the Plan when you are [insert age] or older and have completed [insert years] of service. –There are no age requirements for participation, and all full- and part-time employees are eligible. When Can I Enter the Plan? –If you are an eligible employee, you can join the Plan on the following entry dates: [insert dates] –You can join the plan upon meeting eligibility requirements.

6 Enrollment How Do I Enroll in the Plan? –You can enroll by completing an enrollment form and returning it to [insert location] or you may complete enrollment online (contact RPC to setup this feature). –If you do not wish to participate in the Plan, you must opt out of it in writing by [insert instructions].

7 Contributions How Much Can I Contribute to the Plan? –You may contribute between [insert limits] of your before-tax pay in [insert current year]. –You may contribute up to [insert current limit] or 100% of your salary, whichever is less. –If you are 50 years or older, you can also make “catch-up” contributions of up to [insert current limit]. –You have the option of deciding whether to salary defer all or any part of your employer bonus. –You may contribute a portion of your wages to a Roth account. These contributions are on an after-tax basis, but withdrawals at retirement including earnings are tax-free. [Remove if plan doesn’t allow ROTH]

8 Contributions Will My Employer Contribute to My Account? –Your employer has decided to contribute an employer contribution that is [insert match or non- elective amount discretionary].  [Insert if plan is Non Elective: This amount will be contributed to you even if you do not defer a portion of your salary.]  The contribution is allocated to your account by your company on an [insert per pay period, quarterly or annual] basis.  This amount [choose is/is not] subject to a vesting schedule.

9 Contributions Remove this slide if Profit Sharing does not apply Will My Employer Contribute to My Account? –Your employer may decide to make a discretionary Profit Sharing Contribution to be determined annually by the following formula [select one]:  Pro Rata: Profit-Sharing Contributions are allocated based on your compensation level.  Integrated: Profit Sharing Contributions are allocated based on your compensation level up to the Social Security taxable wage base with an additional allocation for any wages above that limit.  Cross-Tested: Profit Sharing Contributions are allocated based on age or years of service.

10 Contributions Vesting Schedule – Vesting means ownership of your account. You are always 100% vested in your contributions, your employer safe harbor contributions and the earnings on those contributions. This money is yours. – Your employer’s contributions are vested according to the following schedule: [Insert Vesting Schedule] – For vesting purposes, an employee must work amount hours in a calendar year to be credited with a year of vesting and [does/does not] need to be employed on the last day of the year.

11 Managing Your Money How Will Contributions to My Account Be Invested? –Contributions are invested based on the investment options you select. –If you do not choose investments, your assets will be automatically invested in the [insert default investment]. Can I Change the Amount I Am Contributing? –You can change the amount you are contributing [insert frequency] by completing the enrollment form and submitting it to your Plan Administrator.

12 Conversion process When will this change take place? –Participant accounts will be converted in [insert MONTH] –A new election must be made for investments

13 Managing Your Money How Can I Keep Track of My Account? –Call –Web site access at –You will receive an account statement quarterly or on demand online

14 Access to Your Money Can I Take Money Out of My Account? –You may be able to withdraw money in these events:  Retirement  Death  Permanent disability  Separation from service  Pre-retirement distribution  Hardship (Immediate and heavy financial need) [remove if not applicable]  In-service withdrawals

15 Access to Your Money Remove this slide if Hardship withdrawals do not apply What is a Hardship Distribution? –A Hardship distribution is for an immediate and heavy financial need as determined by the Plan Administrator. The following conditions qualify as a hardship:  Medical care for you, your spouse, & your children/dependents  Purchase of a principal residence  Tuition & related education fees for you, your spouse, & your children/dependents  To prevent the eviction of you from your principal residence  Burial/funeral expenses for your parents, spouse, & children/dependents  Repairs for damages to your principal residence that would qualify for the casualty deduction

16 Access to Your Money What If I Leave? –You generally have several options:  Rollover to IRA or new plan, if allowed  Take vested balance in cash; Federal and State tax consequences and penalties apply  Leave money in, if your balance exceeds [insert cash out provision amount].  Auto rollovers for balances between $[insert amount] and $[insert amount]

17 Access to Your Money Remove this slide if Loans do not apply Can I Borrow Money From My Account? –Maximum of 50% of your vested balance, up to $50,000 limit –The interest rate charged is the Prime Rate + amount % –Loans must be repaid within 5 years –The minimum loan amount is $1,000 –The maximum number of loans outstanding is amount –Spousal consent is required to obtain a loan –Review Summary Plan Description for details –Loan modeling calculators are available

18 Additional Information This company plan is intended to meet the conditions of 29 CFR c-1. What this means is that the plan is designed to comply with Section 404(c) of the Employee Retirement Security Act of 1974 (ERISA), as amended. –Participants in the plan manage their own investment accounts by directing account contributions to one or more of the investment alternatives provided by the Plan. –As a plan participant, you will be responsible for your own investment decisions. –Plan fiduciaries may be relieved of liability for any losses in your account that can be attributed to decisions made by you or your beneficiary(ies). [insert Name] is the name of the Financial Advisor. Information about the plan’s investments should be directed to [insert contact information here].

19 Additional Information At your request, you may receive specific information about: The Plan’s investment alternatives including: –a description of annual operating expenses; –copies of any prospectuses, financial statements and reports; –and details about the value, historical performance, and portfolio composition of each investment alternative. To request these materials, please login into the website.

20 Insert Fund/Model Specific Information

21 Financial Planning Basics

22 ROTH (post-tax) versus Deductible (pre-tax ) Assumptions: Retire at age 65, Date of Death at 90, 7% annual return on investments, 20% Tax Rate and you don’t resave the tax savings. The advantage of funding a Roth

23 Basic financial planning Do you need (or update) a will, guardianship on children, power of attorneys. Any update needed on beneficiaries? Are you striving to get the full company match? After you get the full company match consider a ROTH. Did you cover your risks? Term life, disability, long term care. Did you refinance your debt?

24 Any questions….. Thanks for listening!


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