401k and roth 401k
Hirshfield's retirement plan is a valuable tool to help you save for your future.
Because saving for retirement is important, Hirshfield's provides auto-enrollment as a feature of your plan.
Option #1:
401K
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Subject to IRS Annual Limits
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Eligible for Employer Match (combined) at 35% up to your 12% contribution.
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Contributions are made with pre-tax dollars (that lowers your taxable income now, but you will pay taxes later in retirement)
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Withdrawals will be taxed at your ordinary income tax rate. Most state income taxes apply too.
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Access: You can start receiving distributions at age 59 1/2.
Suggested when:
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Timeline to retirement is shorter.
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Higher federal tax bracket (>=22%)
option #2:
roth 401K
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Subject to IRS Annual Limits
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Eligible for Employer Match (combined) at 35% up to your 12% contribution.
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Contributions are made with after-tax dollars (that means you pay taxes on that money now, but not after retirement)
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Withdrawals: The money you put in and its growth are not taxed. However, your employer match is subject to taxes.
Suggested when:
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Timeline to retirement is longer.
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Lower federal tax bracket (<=12%)
investment strategies
diy (do it yourself)
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Make investment decisions on your own
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Up-front due diligence
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Annual rebalancing
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Adjust investment allocation as you approach retirement
free financial advisor
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Work with Christensen Group for additional support
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Build personalized investment portfolio together
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You are still responsible for making all changes
FREE financial Advisor:
Spencer Rose, CIMA, QKA
952-653-1047
Ross Dahlof
952-653-1071
Scott Lichter
952-653-1077
Aaron Decock
952-653-1170
Or click on this link to view the document
Eligibility
You must be 21 years of age and completed 90 days of service. You will receive a "welcome" package from Fidelity Investment with all of your options before your 90 day waiting period.
Auto Enrollment
Hirshfield's has a automatic contribution set up at 4% with annual increments of 1% up to 10%.
Hirshfield's default investment funds are T. Rowe Price Retirement funds, depending on your normal scheduled retirement age.
Once you have met both eligibility requirements and you have not elected a contribution rate and/or directed how your contribution will be invested, contributions are being automatically deducted from your paycheck starting on the 1st of the month following your 90 day waiting period.
To opt out, or change the default set up, you must register at: www.401k.com or call 1-800-835-5097. This information will also be in your "Welcome" package from Fidelity Investment
Importance to Update your 401(k) Beneficiary Information
When someone passes away without a will, or intestate, the probate court uses the state intestacy laws to decide how to pass assets to heirs.
There may not be much you can do to avoid going through probate once a loved one has passed away, but it helps to understand the process as you work with an attorney or tax advisor.
Probate is a legal process for settling an estate according to the will. The taxable estate is made up of all of the assets your loved one owned or held an interest in, but only assets held individually in their name will generally have to go through probate.
This is why it is so important that you assign beneficiaries to your 401(k) account. Hirshfield's doe NOT have this information on file. It is your responsibility to ensure you contact Fidelity Investments to assign beneficiary information to your account.
Log in to your NetBenefits®Log In Required account to make these updates.
or
1-800-343-3548
DISCLAIMER
This presentation and benefit communication highlights many of Hirshfield’s benefits. Every effort has been made to ensure the accuracy of this information. However, the actual administration of the plans Is governed by the plan documents and insurance agreements. In the event of a discrepancy between this communication and the plan documents and agreements, the plan documents and agreements take precedence.