This innovative 401(k) Aggregate approach is sponsored by the Syracuse CoWorks, powered by Ameritas.
Supported by TAG Resources and Mesirow Financial.
To discuss joining speak with our resident Foy Benefits specialist.
What if I already have a 401(k) plan?
Nobody will be required to move their existing 401(k) plan. If you are interested however, we would be happy to take a look at your plan and benchmark it so that you may compare it to our offering.
If I am paying for a service already is there any flexibility on pricing?
We are able to apply lower pricing as long as either the transfer of existing plan assets or the rollover of qualified assets into the newly established Ameritas plan exceed $250k.
What are the advantages of a 401(k) vs an IRA for an employer or sole proprietor?
401(k) plans offer higher contributions limits as well as the ability to offer loans.
How long do I have to decide whether I want to start up a plan?
While the installation fee pricing discount of $250 is only applied to plans who commit to signing up by May 31st, The Collective will continue to be offered moving forward. You may decide to set a plan up at any time.
Can I roll my existing 401(k) or an IRA into this plan?
Yes, Ameritas has a simple form to complete and a rollover team to walk you through the process of moving your existing retirement assets into your newly established plan.
How do I pick the investments in my 401(k) plan with Ameritas?
Ameritas partners with Mesirow Financial Investment Strategies and Stadion Money Management to curate and monitor a comprehensive investment lineup for participants. Throughout the enrollment process you will be presented with risk and goal analysis questionnaires to identify the investment strategy that best suits your specific needs.
General 401(k) Questions
What is a 401(k) retirement plan?
A 401(k) is an employer-sponsored qualified retirement savings plan. It allows you to save for retirement and have the savings invested while deferring current income taxes on the saved money and earnings until withdrawal. The Roth 401(k) requires post-tax contributions, but allows for tax free growth and distribution.
Who can establish a 401(k) plan?
A 401(k) plan may be established by a sole proprietor, partnership, corporation and by certain non-profit organizations. Currently, state and local governments
are prohibited from adopting a 401(k) plan.
How does a 401(k) plan work?
You decide, based upon applicable plan provisions, how much money you want to have deducted from your paycheck and invested during each pay period, up to the legal maximum, established annually by the Internal Revenue Service (IRS) a lesser amount if limited by your plan. With a participant directed account you decide how to invest that money, choosing from your plan’s different investment options. The money you contribute to your 401(k) account is deducted from your pay either before income taxes are taken out (Pre-tax contributions) or after income taxes are taken out (Roth contribution).
What are pre-tax contributions?
Pre-tax contributions are the amounts invested into your company retirement plan that are deducted from your paycheck before income taxes are calculated. By contributing to a 401(k), you can actually reduce the amount you pay in taxes each pay period. Making pre-tax contributions helps you lower your taxable income. Because of these tax advantages, the IRS puts certain restrictions on withdrawing this money before you reach retirement age. For example, if you earn $1,000 each
paycheck, and you contribute 5 percent ($50), you are only taxed on $950. You don’t owe income taxes on the money until you withdraw it from the plan.
What are Roth Contributions?
Roth contributions are the amounts invested into your company retirement plan that are deducted from your paycheck after income taxes are calculated. The Roth contributions and earnings
can be distributed tax free if you have had your money in the Roth account for 5 years and have reached age 591⁄2, died or become disabled (known as Qualified Roth Distribution).
How much can I contribute per year?
Under current tax law, you may contribute a maximum of $19,000 (limit for 2019, subject to certain requirements). Thereafter, the limit will increase in increments of $500 for cost-of-living increases. Any previous contributions and your participation in other retirement plans may also affect your contribution limit. Of course, you must satisfy the plan’s eligibility requirements before you can defer.
Can I make catch-up contributions?
Current IRS guidelines allow an individual who will
attain age 50 within the calendar year to make an
additional pre-tax catch-up contribution if allowed by
your plan provisions. For 2019, the additional catch-
up amount is $6,000.
How are my contributions made?
Your contributions are automatically deducted directly
from your paycheck. To enjoy the convenience of
payroll deduction, once you have met the plan’s age
and service requirements, simply submit an enrollment
form indicating a deferral percentage to your employer
and your contributions will be deducted and added
directly to your 401(k) retirement plan. Your plan may
limit the frequency in which you may begin, or adjust,
your deferral election.
When must my companyinvest my contributions?
Department of Labor regulations require plan sponsors to submit employee contributions into the
plan in a “timely manner” after they are deducted from the employee’s pay. The regulations provide that participant contributions to retirement plans
become plan assets and must be deposited on the earliest day they can reasonably be segregated from the employer’s general assets, but in no event later
than the 15th business day of the month following the month in which the participant contributions are withheld by the employer. For smaller plans (with less than 100 participants) a 7-day rule applies. Failure to submit contributions in a timely manner may result in fines and other penalties.
What is a company match?
Some companies offer a “match” or “matching contribution” as an incentive to participate in the company retirement plan. It means that the company will contribute a certain amount to your account (usually between 25% and 100%) for
every percent that you contribute, up to a certain limit. The match formula can vary. To receive the
matching contribution, the plan may require that you meet separate eligibility requirements. It makes good sense to take advantage of a company match
by setting aside the maximum amount required to qualify for a matching contribution. If your employer offers a matching contribution, your savings can
grow that much faster.
General 401(k) Questions
Can I change or stop my contributions?
Yes, you can change the amount of your contributions as often as your plan permits. You can also stop your contributions at any time and start again on a date determined by the plan.
Can I access my money in an emergency?
Depending on your plan, you may be eligible for a
“hardship withdrawal.” According to IRS regulations,
your “hardship” must represent an “immediate and
heavy financial need” and there must not be “any
other resource reasonably available to you to handle
that financial need” (e.g., Insurance, liquidation of
assets, etc). The IRS recognizes six reasons for
a hardship withdrawal: (1) certain unreimbursable
medical expenses, (2) purchase of a primary
residence, (3) payments of post-secondary tuition
for the next year, and (4) to prevent eviction from or
foreclosure on your home. Some plans also allow
hardship withdrawals for other reasons, (5) payments
needed to repair damage to your principal residence
that would qualify as a deductible casualty expense,
(6) payment of funeral expenses for your deceased
parent, spouse, children or dependents.
Can I borrow money from my 401(k) retirement plan?
Loans may be available subject to IRS restrictions
and plan rules. Check with your human resources
department or plan administrator for details.
How does taking a loan affect the value of my account?
Your account will be reduced by the amount of the loan. Over time you may miss out on the potential
earnings that may have occurred as a result of a loss of your principal in your account. Even though you repay a loan to your account and continue to make contributions, you still lose the earnings potential for the amount of the loan while you are repaying it.
How will I know the value of my 401(k) retirement plan?
You will receive quarterly statements detailing your plan activity. You can also access your account information via our website. Online access allows you to monitor and make certain changes to your account, provides quick access to historical investment performance for your plan and summarizes your plan provisions.
Will my Social Security benefits be affected by my 401(k) plan distribution?
Not necessarily. Having a 401(k) will not reduce your Social Security benefits, but distributions from your 401(k) taken during retirement may make your Social Security benefits subject to federal income tax, especially if you have significant other income.
Can I contribute to an IRA and to my company 401(k) plan?
Yes, you may contribute to an IRA and your
company 401(k) plan, however the deduction may
be limited. Please contact your tax advisor for more
What happens to my 401(k) plan money if I leave my current employer?
Generally, if you change jobs, you have four options
available: You can roll your money directly into an
Individual Retirement Account (IRA). If allowed by
your new employer, you may be able to roll your
money into your new plan. If you have more than
$5,000 invested in your account, you may be able
to leave money in your current 401(k) plan. You
can take a full or partial withdrawal with the check
payable to you and receive the funds directly,
depending on the terms of your plan. You will owe income taxes on the withdrawal and you may also
owe an additional 10% IRS early withdrawal penalty
if the funds are withdrawn before you turn age 591⁄2
(or age 55 if you have separated from service). In
addition, other penalties may apply. All options are
subject to your specific plan rules..
When do I have to start taking money from my 401(k) plan?
You must begin to take distributions no later than
April 1 of the year following either the year in which
you turn age 701⁄2 or the year in which you retire,
whichever is later. If you are a five percent owner of
the company that established the plan, you must
begin to take distributions no later than April 1 of
the calendar year following the calendar year in
which you attain age 701⁄2.
What happens to my 401(k) retirement plan if I die?
Your beneficiary will receive the value of your retirement plan. This death benefit may be subject to income taxes.
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