401(k) Company Match Continues July 1, 2014

401(k) Company Match Continues  July 1, 2014

Independent will continue to match 50% of each employee’s contribution to his or her 401(k) account for the plan year that begins on July 1, 2014, up to the plan year limit of $300. This means that an employee who contributes $600 or more for the year will actually be investing at least $900 to his or her 401(k) account because of the $300 matching contribution from the company.

 

Independent and NFP-Lincoln Benefits Group, which acts as the Plan’s co-fiduciary, are planning an education initiative  to make sure employees have access to educational information and receive individualized support in planning and saving for retirement.  

These actions were recommended by the 401(k) committee members --- President Ed Dulin, Corporate Treasurer Toni Ayers and Corporate Secretary and Plan Trustee Wanda Ford-Waring; and, approved by  Independent’s board of directors.      

 

A few tips to remember about the 401(k) Plan:

 

*The first benefit is that your contributions to a 401(k) plan are not taxed as current income. This reduces your salary before taxes are withheld, meaning you pay less in taxes each year. Of course, you will eventually pay taxes when you begin to withdraw money from the plan, but you may be in a lower tax bracket at that time.  You may also be able to take a tax credit for making eligible contributions to the 401(k).

*Money held in a 401(k) plan grows tax deferred. The investment earnings on plan assets are not taxed as long as they remain inside the plan. In the meantime, tax-deferred growth gives you the opportunity to build a substantial 401(k) balance over the long term, depending on investment performance.

 

*Your contributions can be a percentage of your gross pay or a flat dollar amount per pay period. Each employee can defer up to $17,000 annually tax deferred; if you are age 50 and older before the close of a plan year, you are eligible to contribute up to $22,500 to your 401(k) account, all tax deferred.

* Every employee age 21 or over, who has been with the company one year with at least 1,000 hours of service, is eligible to join Independent’s 401(k) Plan.

* Ask yourself …. If someone offered you free money, would you refuse it? Probably not. But that's just what you're doing if you don't contribute to your 401(k) to take full advantage of the company’s $300 match.  The best way to enjoy a retirement is to contribute a portion of your  income during your working years to your 401(k) account. 

To join the 401(k) Plan and begin receiving the company match, contact inipayroll@newszap.com.  If you would like to increase your current contribution, changes can be made through your Ceridian Self Service by selecting Benefits>401(k) Elections.

For questions on investment funds or retirement planning, contact Rob Kania of Lincoln Benefits via email at rkania@nfp.com or call 800-826-7859 and refer to INI’s plan number 61386.

To learn more about Independent’s 401(k) plan, review the summary plan document in the company handbook on the toolbox @ http://initoolbox.newszap.com/handbook.htm#VIII._Benefit_Summary_Plans_