SECURE YOUR FUTURE WITH A 401(k)
Outstaffing believes that every employee should take advantage of the 401(k) tax-deferred investment plan, even those with working spouses who have their own investment plan.
401(k) Contact Information
Platform Provider: The Retirement Plan Company (“TRPC”)
Platform Website: www.trpcweb.com
Customer Service: 1-800-529-4249
Plan Financial Advisor: E. Lee Davidson, Jr.
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.
YOUR 401(k) RETIREMENT PLAN
CHANGING CONTRIBUTIONS
Contributions can be changed at any time, as you know, through the TRPC website (www.trpcweb.com) or by sending us an email.
SELECTING INVESTMENTS
TRPC provides a secure online investment/administration platform, giving you access to the following features:
- Fund Selection: Comprehensive, diverse selection of funds.
- Transaction Costs: No transaction costs and no front or back end fees on transfers.
- 24/7 Modification: Log on at any time to modify your investment elections.
- Statements: Access daily statements with all of our quarterly statements referenced online.
- Trading &Transfers: Same-day trading on fund transfers - changes will be effective immediately.
- Market information: You'll have real-time market information and pertinent educational content.
NEW EMPLOYEE ACCESS
New employees will not be able to access the TRPC website until your first payroll contribution has been processed. The TRPC's Quick Start Guide explains the steps required to access and set up your account on their website (www.trpcweb.com). If you are unable to login, please contact TRPC. Once on TRPC’s website you will be able to read the details of the plan. A copy of the Outstaffing 401(k) Plan Documents and Summary Plan Description are in the Plan Documents section.