INITIAL INVESTMENTS

The Outstaffing 401(k) plan provides automatic enrollment for all employees at a default 3% contribution level. If you do not want to participate, simply change your contribution level to zero percent (0%).  Don't worry, you can re-up anytime you want!  This is acknowledged as part of the Employee Onboarding process. The 401(k) contributions are sent to the TPA for deposit each payroll. They will be allocated to the investment accounts selected by the employee (default is a "safe" money market account). Employees can manage investments and contributions 24/7 on the TRPC website.

PRE-TAX SAVINGS

Through a 401K, you can authorize your employer to deduct a certain amount of money from your paycheck before taxes are calculated and to invest it in the 401K plan. You decide how much money you want deducted from your paycheck and invested during each pay period, up to the legal maximum (the IRS sets an annual dollar limit each year). Your money is invested in investment options that you choose from the ones offered through our company's plan.

The money you contribute to your 401K account is deducted from your pay before income taxes are taken out. This means that by contributing to a 401K, you can actually lower the amount you pay in taxes each pay period. For example, if you earn $1,000 each paycheck, and you contribute 5% ($50), you are only taxed on $950. You don't owe income taxes on the money invested in the 401K until you withdraw it from the plan. At the time you choose to withdraw funds from your 401K investment, you could be in a lower tax bracket which would enhance the value of your retirement savings.

"Tax-deferred investing" is one of the best benefits of contributing to your 401K. It means that you can defer--or postpone--paying taxes on the money you invest in the plan. Why is this a benefit? The money you contribute on a pre-tax basis comes out of your pay before it's taxed, so more of your money is going to work for you. You don't pay taxes on the money you contribute or any account earnings until you start taking it out, which is usually at retirement when you could be in a lower income tax bracket.

IN-SERVICE WITHDRAWALS

An in-service withdrawal occurs when an employee takes a distribution from a qualified, employer-sponsored retirement plan, such as a 401(k) account, without leaving the employ of their company. This may occur without a tax penalty any time after the employee reaches age 59½, or if the employee withdraws up to $10,000 to purchase their first home, declares a hardship, or establishes extreme financial need.

HARDSHIP WITHDRAWALS

It is important to define what a hardship is.  A hardship distribution is a withdrawal from a participant's retirement account made because of an immediate and heavy financial need.  It is limited to the amount necessary to satisfy that financial need, but may include amounts required to pay the taxes and penalties.  While living conditions and lifestyle choices differ for everyone, the government has created a universal list of events that may cause financial strain.  The list includes:

• Qualifying medical expenses
• Costs related to a principle residence (but not mortgage payments)
• Tuition
• Prevention of Eviction
• Burial or Funeral Expenses
• Repair of damages to principle residence 

ROLLOVERS

To rollover funds from your old 401(k), to the Outstaffing sponsored plan, you will have to contact TRPC directly.

TERMINATION

Generally, an employee can cash out a 401(k) whenever leaving a job. If an employee wants to avoid paying taxes on the 401(k) money received after being terminmated, he/she can roll the amount into an individual retirement account or another retirement plan.