New Employee
Retirement/401(k) Plan
We believe our 401(k) retirement benefits are second to none because they are generous, competitive and flexible.
We offer you a dollar-for-dollar match up to the first 6 percent you contribute of your combined pre-tax contributions, Roth after-tax contributions and traditional after-tax contributions. The minimum amount that you can contribute to either is 1 percent, and the maximum is 75 percent.
Fixed Employer Contribution
Even if you choose not to contribute any of your money, your employer will contribute an amount equal to 3% of your total compensation into your 401(k) account. This is called the fixed employer contribution.
Automatic Enrollment at 3%
If you do not make an election to participate in the 401(k) plan within 45 days of your hire date, we will automatically enroll you in the plan at a 3% contribution rate. From that point on, we will increase your contribution by 1% each year on your anniversary date of hire up to a maximum of 15%.
Take Advantage of Employer-Matching Funds!
For employees hired after Jan. 1, 2007, or for those who do not participate in their employer’s pension plan, here is an example of how you can take full advantage of the company-matching funds in the Farm Credit Foundations 401(k) plan.
Changing Funds or Contribution Amounts: You can make changes to your 401(k) account at any time, but be aware of the payroll processing deadlines.
401(k) Contribution and Compensation Limits for 2011
The Internal Revenue Code has limits for qualified 401(k) plans on contributions and compensation used to determine employer contributions.
- $16,500 - Combined pre-tax contributions and after-tax Roth 401(k) contributions
- $5,500 - Catch-up contribution limit if age 50 or older anytime during 2010
- $49,000 - Total employee plus employer match/ contributions to 401(k) accounts (does not include any applicable catch-up contributions):
- Pre-tax contributions
- After-tax Roth 401(k) contributions
- Traditional after-tax contributions
- Employer match/fixed employer contributions
Rollovers
In certain circumstances, you may elect to have benefits earned under a previous employer’s retirement plan transferred or rolled over to your account under this Plan. You may also roll over funds held in an Individual Retirement Account (“IRA”), provided such account consists solely of amounts rolled over from a retirement plan.
Managing Your Investments
The Plan offers a range of investment options (including a self-directed brokerage account) so you can put your money to work in a number of ways. You can see a list of investment funds available under the Retirement section. After your 401(k) account is set up following receipt of your first system-generated paycheck, you can access fund profiles at www.mylife.newyorklife.com.
Flexibility
You may change the investment of your account balance at any time. You may also change the amount you are contributing to the Plan at any time.
Vesting
Your pre-tax, Roth after-tax, and traditional after-tax contributions and any rollover contributions you make are always 100% vested. This means you have full ownership of such contributions. Vesting in any Employer contributions is 25% per year of service.
Loans, Withdrawals and Distributions
The Plan allows you to borrow against your vested account balance. In addition, the Plan allows withdrawals under certain limited circumstances. When you leave your Employer, your vested account balance will be paid to you or you may elect to have your vested account transferred directly to an IRA or to another eligible retirement plan. Under certain circumstances, you may also elect to leave your vested account in the Plan.
Foundations 401(k) Plan
6% Your Contribution
+ 6% Employer Match
+ 3% Fixed Employer Contribution
= 15% Into Your 401(k) Account