The Archdiocese of New Orleans 401(k) Plan. A great way to save for your future

Transcription

1 The Archdiocese of New Orleans 401(k) Plan A great way to save for your future

2 A: The answer is b) 33%. That means you ll have to save money on top of Social Security to fund your retirement. Welcome to the Archdiocese of New Orleans 401(k) Plan. We all know that saving for the future is important, and the Archdiocese of New Orleans 401(k) Plan (the 401(k) Plan) is a valuable benefit designed to help support your retirement savings strategy. Whether you re new to saving or an experienced investor, this guide explains the advantages of the 401(k) Plan and how to get enrolled today. Q&A Q: For those age 65 and older, what share of income 1 is provided by Social Security? a) 25% c) 67% b) 33% d) 89% 1 "Income" is the aggregate income that comes largely from four sources: Social Security, earnings, pensions and asset income (and other sources amounting to only 3% of the total). Source: Income of the Aged Chartbook, Social Security Administration, 2016 Account Access If you are ready to join right now or just have a question, you have access to the 401(k) Plan when you need it. Web Mobile Search Voya Retire in your preferred mobile app store. 2 Phone Call (877) If you have questions or need assistance, Customer Service Associates are here to help. They re available from 7:00 a.m. to 7:00 p.m. Central Time, Monday through Friday (excluding New York Stock Exchange holidays). 2 Includes iphone trademark of Apple Inc., registered in the United States and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc. Amazon and Kindle are trademarks of Amazon.com, Inc. or its affiliates. About Voya Financial Voya Financial (NYSE: VOYA) is a premier retirement, investment and insurance company servicing the financial needs of approximately 13 million individual and institutional customers throughout the United States. Voya Institutional Plan Services, LLC (VIPS), a member of the Voya family of companies, is the Plan s recordkeeper. VIPS provides you with Plan information, saving and investing education, transaction processing and more on your journey to retirement. 1 Archdiocese of New Orleans 401(k) Plan

3 Congratulations! You can join today. You re eligible to participate in the Archdiocese of New Orleans 401(k) Plan Great features are offered, including: Pre-tax savings you pay less in taxes today Company matching contribution it s like extra money that helps your account grow Tax-deferred investing your savings grow without being taxed A choice of investments so you can create a portfolio that s right for you Loans and withdrawals should you need your savings before retirement 24/7 account access through the Internet or by phone Already know you want to save? To enroll today, simply go to Log in with your Social Security number and Password (issued by Voya and mailed to you in a security envelope). The first time you log in, you will be asked to change your Password and set other account access preferences. Once you've logged into your 401(k) Plan account, from Home page > Enroll Now, select your contribution rate this is the amount that will be taken from your paycheck each pay period and then select your investment funds. Confirm your choices and submit; that s it! You ll receive a confirmation statement of your enrollment, and contributions typically begin within two to three pay periods. A Word or Two on Auto Enrollment It s important that we all save for retirement. That s why the 401(k) Plan has a feature called auto enrollment that makes getting started easy. If you neither enroll on your own nor decline enrollment, you will be automatically enrolled at a 4% pre-tax contribution rate and invested in the Plan's qualified default investment option, the State Street Target Retirement Fund. More information on auto enrollment can be found on page 10. If you do not have your Password, call the Information Line at (877) and access the enrollment menu. If at any time you need help, simply press 0 to speak to a Customer Service Associate. 2

4 Five reasons to start saving today. Reason 1. Your future is in your hands. Sources of Retirement Income The truth is we all have to take responsibility for our future. And that includes making sure we have the income we ll need in retirement. With Social Security estimated to provide, on average, a little more than 33%, the rest of your retirement paycheck is up to you through personal savings and other retirement income sources including Individual Retirement Accounts (IRAs) and employer provided plans like the Archdiocese of New Orleans 401(k) Plan. By contributing to the 401(k) Plan now, you ll be taking a great step toward building your savings for tomorrow. 33% 67% Reason 2. Give yourself a tax break. Because you contribute to the 401(k) Plan account on a pre-tax basis (that is, before taxes are taken out of your paycheck), every dollar you save reduces your current taxable income by a dollar. This means you end up paying less in taxes today. It s almost like you re saving for your future at a discount. You pay taxes on your savings and earnings at withdrawal. n Social Security n Your Savings and Other Retirement Income Sources Source: Income of the Aged Chartbook, Social Security Administration, To obtain your Social Security income estimate, go to Quick Tip: Go Online myorangemoney Web Experience Will you be financially ready for retirement? Located on your 401(k) Plan website, myorangemoney is an educational, interactive online experience designed to show you the income you ll likely need each month in retirement and the progress you ve already made toward that goal. Orange Money is the money you need to save for retirement, versus green money which can be spent now. Based on your 401(k) account information, you can further customize it by adding outside retirement contribution information and adjust your savings assumptions to see how your retirement income estimate may change. Go to your 401(k) Plan website and experience it today. 3 Archdiocese of New Orleans 401(k) Plan

5 Reason 3. Two words: matching contributions Each pay period, for every $1.00 you contribute to the 401(k) Plan, the Archdiocese of New Orleans will add an additional $ to your account, up to the first 3% of your pay. It s called a matching contribution, and it s a powerful boost to your savings. You just have to save 3% in your 401(k) Plan account to get the full 3.5% match. Reason 4. The sooner you start, the more you could have. Starting right now can make a huge difference. Why? Because the longer you save, the more time your savings has to grow and earn returns that go back into your account where they can earn more returns. It s called compounding. And with the 401(k) Plan, your savings and company matching contributions, as well as returns, grow tax-free until withdrawal so you benefit from tax-deferred compounding. Q&A Q: Many Americans understand that the earlier they start saving, the better off they ll be. But what percentage of Americans are currently saving for retirement? a) 57% c) 81% b) 68% d) 97% A: The answer is a) 57%. Whatever you do, don t be one of the 43% who aren t saving for their future. Source: EBRI, Retirement Confidence Survey, While it s never too late to start saving, just look at how much more you could have by starting early and saving $200 a month. If you start saving $200 a month for: 40 Years $399, Years 20 Years $92,621 $201,485 Potential Retirement Savings How did we come up with these numbers? They re based on you saving $200 a month with a 6% annual rate of return compounded monthly. This example is for illustrative purposes only and not intended to be investment advice or a prediction of future results. Reason 5. Your money is always yours. Your contributions always belong to you you have access to those savings at anytime. It s called vesting and you are always immediately 100% vested in your contributions and related earnings. You are also 100% vested in any matching contributions, from the day they are deposited to your account. Make it Simple If you ve been saving in a prior employer s tax-qualified plan (401(k), 403b, 457, etc.) or have a rollover IRA, you can transfer that money to your 401(k) Plan account so that you can manage your retirement savings in one place it s called a rollover. If you need help or have questions, call the Information Line and speak to a Customer Service Associate at (877) Please carefully consider the benefits of existing and potentially new retirement accounts and any differences in features. Rollover assets may be subject to an IRS 10% premature distribution penalty tax. Consult your own legal and tax advisors regarding your situation. 4

6 What kind of investor are you? Are you a hands-off investor? Need to be in control? Or do you fall somewhere in between? Everyone has a different approach to investing. That s why the Archdiocese of New Orleans 401(k) Plan has a range of options to fit your level of experience, knowledge, and interest. Take a look. Personalized advice If you like: Getting savings and investment advice tailored to your personal situation, Voya Retirement Advisors (VRA) 3 provides you with access to two levels of investment advisory service, powered by Financial Engines. Consider: Online Advice if you prefer to manage your own account, this web-based service lets you get personalized retirement income forecasts 4, risk assessments, specific savings, and fund recommendations at no additional cost to you. Professional Management if you prefer to have your account managed for you, you can work one-on-one by phone with a VRA professional. The program offers: Personalized advice and forecasts 4 Specific savings and fund recommendations Ongoing account management support Quarterly progress reports There is an additional fee if you enroll in Professional Management program. Easy fund choice If you like: The convenience of having a professional choose and manage the fund mix Spending your free time not focused on investing Consider: The Target Date funds These one stop shopping funds are a pre-diversified mix of investments managed by a professional fund manager who automatically adjusts the risk/return exposure of the fund as you get closer to retirement. You choose the fund with the date closest to when you will be age 65 or plan to retire. Pick my mix If you like: To be in control To pick and manage your investment mix To keep tabs on your account Consider: The 401(k) Plan s core funds These include stock, bond, and cash investments. You pick the funds and create a strategy that you think will best fit your time horizon and risk tolerance, and then manage your portfolio of funds over time. 5 Archdiocese of New Orleans 401(k) Plan

7 Quick Tip: Go Online For details, go to Account > Get Advice on the Plan 401(k) Plan website or call the Information Line at (877) and ask to speak to a VRA Investment Advisor Representative. Representatives are available Monday through Friday, from 7:00 a.m. to 7:00 p.m. Central Time (excluding New York Stock Exchange holidays). Personalized portfolio recommendations from the Voya Retirement Advisors are based on the funds available in your 401(k) Plan and are designed to help you reach your retirement goals. For more information about the funds, including historical performance, fund fact sheets and more, go to Investments on the 401(k) Plan website. 3 Advisory Services provided by Voya Retirement Advisors, LLC (VRA). For more information, please read the Voya Retirement Advisors Disclosure Statement, Advisory Services Agreement and your plan s Fact Sheet. These documents may be viewed online by accessing the advisory services link(s) through your plan s website at You may also request these from a VRA Investment Advisor Representative by calling your plan s information line at (877) Financial Engines Advisors LLC acts as a sub advisor for Voya Retirement Advisors, LLC. Financial Engines Advisors, LLC (FEA) is a federally registered investment advisor and wholly owned subsidiary of Financial Engines, Inc. Neither VRA nor FEA provides tax or legal advice. If you need tax advice, consult your accountant or if you need legal advice consult your lawyer. Neither Voya Retirement Advisors nor Financial Engines Advisors can guarantee results and past performance is no guarantee of future results. Financial Engines is a registered trademark of Financial Engines, Inc. All other marks are the exclusive property of their respective owners. 4 IMPORTANT: Forecasts, projected outcomes or other information generated regarding the likelihood of various investment options are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. In addition, results may vary each time a forecast is generated for you. Fund Options: State Street Target Retirement Income Fund State Street Target Retirement 2015 Fund State Street Target Retirement 2020 Fund State Street Target Retirement 2025 Fund State Street Target Retirement 2030 Fund State Street Target Retirement 2035 Fund Fund Options: Galliard Stable Value Fund Vanguard Short Term Income Fund PIMCO Real Return A MFS Total Return Bond Fund R3 Dodge & Cox Balanced Fund MFS Value Fund State Street Target Retirement 2040 Fund State Street Target Retirement 2045 Fund State Street Target Retirement 2050 Fund State Street Target Retirement 2055 Fund State Street Target Retirement 2060 Fund T. Rowe Price Blue Chip Growth Fund JP Morgan Mid Cap Value Fund JP Morgan US Small Company Fund Dodge & Cox International Stock Fund T. Rowe Price International Discovery Fund Principal Global Real Estate Securities Fund Note: Each Target Retirement Fund seeks to provide a mix of growth and income that suits people retiring around a specific year (or target date). The Funds are offered in five year increments, as indicated in a Fund s name (excluding the Target Retirement Income Fund, which is designed for individuals in retirement). Over time, the mix of investments in each Fund changes according to a predetermined glide path. Each Fund will become more conservative in its investing approach as it nears its target retirement date to help you prepare your savings for retirement. Five years after a Fund reaches its target retirement date, the Fund will merge with the Target Retirement Income Fund. Target Retirement Funds seek to adjust automatically throughout your career, gradually shifting from a ratio of more aggressive investments to more conservative investments as you approach and enter retirement. If your retirement plans change and you decide to retire earlier or later, you can always choose another fund. Also keep in mind, as with any investment, even as you approach and enter retirement, there is still investment risk associated with the volatility of the markets. 6

8 Get to know your 401(k) Plan. Here are some of the key facts and features of the Archdiocese of New Orleans 401(k) Plan. You can learn more, enroll, and transact by going to the website at Or you can call the Information Line at (877) Customer Service Associates are available to help you whether you have questions, need more information, or just need help enrolling or making a transaction. Don t be shy; feel free to call. Eligibility You can start saving in the 401(k) Plan upon your date of hire (or re-hire) and when administratively possible after all enrollment (or re-enrollment) information is submitted. Enrolling To enroll, you ll need to access the 401(k) Plan website or Information Line and select your contribution rate and investment options. Detailed instructions can be found on page 10. Option 1: Easy-Enroll where you are automatically enrolled and the contribution rate and investment options are chosen for you. Option 2: Self-Enroll where you choose your contribution rate and the investment options. Quick Tip: Calculating a Percent (%) of Your Pay 1% of $100 is $1. So, for example, if you save 6%, $6 will go into your 401(k) for every $100 you earn. No matter which enrollment option you select, you can change your contribution rate and/or investment options at any time. If you have questions or need assistance, including assistance in getting enrolled, call the Information Line and speak to a Customer Service Associate. Contributions Contribution is the term used for the money you put into your 401(k) Plan account. Your contribution amount is based on a percentage of your pay and is deducted automatically each payroll period and deposited to your 401(k) Plan account. You can make pre-tax contributions of between 3% and 75% of your pay, up to the annual IRS limit 5. Keep in mind that you can always change your contribution rate at any time, day or night even at midnight on a Sunday! Depending upon the date of your request, you ll see that change take place within one or two payroll periods. The Contribution Rate Escalator allows you to set automatic contribution increases in a time frame of your choosing. It can help give an extra periodic boost to your retirement savings. The rate escalator will work for any contribution level you choose provided your directions are within the limits of the Plan. You can set this up on the Contributions page of the Plan website when you enroll. If you decide you no longer want to automatically increase your contributions, you may change it or stop it at any time. 5 Every year, the IRS announces the latest contribution limits for retirement savings accounts. Please refer to for current limitations. 7 Archdiocese of New Orleans 401(k) Plan

9 Q&A Q: If you saved an extra $25 per week, how much could you have in 30 years? a) $53,250 c) $109,157 b) $75,615 d) $115,675 Assumptions: 6% rate of return compounded monthly in a tax-deferred plan. A: The answer is c) $109,157 Catch-up Contributions They re called catch-up contributions for a reason. They re designed to help you get caught up on your savings as you get older. If you ll be 50 or older by the close of the current calendar year, you can make catch-up contributions on top of your regular pre-tax contributions. While catch-up contributions can be made at any time, they are not classified as catch-up until you have reached the annual standard IRS limit. 5 Matching Contributions This is your savings boost to your 401(k) Plan account. It doesn t cost you anything and all you need to do to get it is save in the 401(k) Plan. For every $1.00 you contribute to your 401(k) Plan account, the Archdiocese of New Orleans will contribute an additional $1.1667, up to the first 3% of your annual salary. Vesting Vesting is a term for ownership of your 401(k) Plan account balance. You re always 100% vested in your contributions and related earnings. You re also 100% vested in any company matching contributions and their earnings. Rollovers Who wants to keep track of their savings from a lot of different accounts? The plan accepts balances from eligible retirement savings plans like a previous employer s 401(k) may be rolled into your 401(k) Plan account. Simply follow the instructions on your 401(k) Plan s rollover in form (you ll find them under Forms at Fund Elections & Transfers The 401(k) Plan offers plenty of flexibility when it comes to selecting your fund elections as well as making changes when you want to. At any time, on any day, you can: 5 Every year, the IRS announces the latest contribution limits for retirement savings accounts. Please refer to for current limitations. Choose different funds for your contributions versus your existing balance Transfer balances from fund to fund Reallocate your entire portfolio to different fund options For a list of the 401(k) Plan s investment options, refer to pages 5 and 6 of this guide or go online to Investments on the Plan website. 8

10 Loans The time may come when you just need extra money for something important a down payment on a house, college tuition, or other large bills. Should you need to, you can borrow from your 401(k) Plan account (a minimum of $1,000; a maximum of 50% of your balance up to $50,000). A loan will have an impact on the growth potential of your savings, and you will need to repay the loan amount and interest to your account through regular payroll deductions. More details on loans including how many you can take and how to request one can be found on the 401(k) Plan website. Withdrawals At age or older, you can take withdrawals of pre-tax savings from your account without tax penalties. Unless you roll a before-tax withdrawal into another qualified plan or a personal IRA prior to age 59½, that money is subject to income taxes and a mandatory 20% federal tax withholding. State and local taxes and withholding may also apply. Before you take a withdrawal, go to the 401(k) Plan website or call an Information Line Customer Service Associate to be sure you understand your options. Transactions Account transactions made weekdays by 3:00 p.m. Central Time will be processed that evening; transactions made on weekends or after 3:00 p.m. Central Time will be processed the next business day. Quick Tip: Keep Your Savings for Retirement If you leave the Archdiocese of New Orleans, you have several choices regarding your 401(k) Plan account money depending on your balance. You can roll over the balance to another qualified retirement plan or individual IRA without penalty; you can request installment payments or an annuity; or you can take the cash as a lump sum payment (a 10% penalty will be charged if you request the money before age 59½). Important Note: Please allow approximately 30 days following your termination date for your account balance to be available for any distributions. For more information, go to the Plan website at Statements You have access to statements online at any time, including the ability to generate a statement based on the timeframe you select even the last 24 hours! Quarterly statements are issued approximately 15 days after each calendar quarter s close. You will receive an each quarter when your statement is ready with instructions on how to access it from your secure online mailbox available on the 401(k) Plan website. Education and Tools Select Education and Tools on the website at you ll have access to a powerful array of tools, educational materials, calculators, and other resources to help you make smart decisions about saving for the future. 9 Archdiocese of New Orleans 401(k) Plan

11 Getting started is easy. And smart. It s important that everyone be saving for retirement whether that s in a couple of years or 40 or more years from now. And the best way to have the savings you ll need is to just get saving. Getting enrolled is easy. There are two easy ways to get started: Option 1: Easy-Enroll With this option, you let auto enrollment take care of it for you. You ll be automatically enrolled in the 401(k) Plan with a pre-tax contribution rate of 4% and invested in the State Street Target Retirement Fund with the date closest to when you will turn 65. By auto enrolling, you get the full company match. You can change your contribution rate and/or investments at any time after enrollment. If you ve decided saving is not for you, you must opt out of auto enrollment before it takes place by making what s called a negative election through the 401(k) Plan website or Information Line. If you miss the deadline and still do not want to be saving, you will need to access your account and change your contribution rate to 0%. Important Security Notes When you enroll online, you ll be asked to change your Password and set security questions in case you forget your Password in the future. You can also establish a username. Be sure to designate a beneficiary. This is the person (or people) who will receive the money in your account in the event of your death. Log on to the 401(k) Plan website and select Personal Information > Beneficiary Information > Add/Edit Beneficiary. Option 2: Self-Enroll You can enroll on your own and choose your own contribution rate and investments. Go to or call (877) You ll need your Social Security number and Password to enroll. Your password comes to you by mail in a small security mailer keep an eye out for it. From the 401(k) Plan website's Home page > Enroll Now; if calling, select the enrollment option from the main menu. Choose how much you want to save each pay period and how you d like it invested. Confirm your elections and submit. That s all there is to it. Typically, contributions will begin within one or two pay periods. Important Note: If you are transferred to or rehired at an Archdiocese of New Orleans entity and have an account with Voya, you are required to actively re-enroll into the 401(k) Plan and choose your contribution rate and investment elections. You are not auto-enrolled. Please carefully watch your payroll deposits to determine whether you need to initiate. 10

12 Access your account anytime, anywhere. Want to increase your contributions at 6:32 on a Sunday morning? Or check your account balance at midnight? No problem. Your 401(k) Plan gives you 24/7 access to your account from just about anywhere. All you need is Internet access or a phone. Web Mobile Search Voya Retire in your preferred mobile app store. 6 Phone Call (877) Don t be shy. If you have questions or need assistance, Customer Service Associates are here to help. They re available from 7:00 a.m. to 7:00 p.m. Central Time, Monday through Friday (excluding New York Stock Exchange holidays). 6 Includes iphone, trademark of Apple Inc., registered in the United States and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc. Amazon and Kindle are trademarks of Amazon.com, Inc. or its affiliates. The Archdiocese of New Orleans 401(k) Plan. Enroll today C.P Voya Services Company. All Rights Reserved. ADNO_EnrollBro_0817 CN D