Emp 503: American Stone and Star Stone 401(k)

Puedes ver la versión español de esta página en la parte inferior.

Introduction

A 401(k) plan is a retirement savings plan offered by many employers in the United States. It allows employees to save and invest a portion of their paycheck before taxes are taken out (but you can also opt to save in a post tax account called a Roth 401(k) if you choose). The contributions and the investment earnings grow tax-deferred in the pre-tax option until they are withdrawn, usually during retirement. In the post-tax option, the Roth 401(k) you do not pay taxes on the investment or the interest made.

Employer Match

The employers offers to match a 50% of your contributions, up to a maximum of $1,000 per year, meaning a contribution of $2,000 becomes $3,000. As options go this is generous, and it's regardless of income (which is also not typical) -- the levels the playing field for those who make less.

Loans and Distributions

Our 401(k) plans allows you to borrow up to half of your money from your account. This interest rate is excellent compared to a credit card, and past employees have used this to make a down payment on a house and to pay down credit card debt, taking advantage of the fact that there's no ding against your credit rating -- because you are essentially taking out a loan from your own money.

Distributions

A distribution is when you take money out of your 401(k) permanently. You can do this after you leave the company, or after the age of 59.5 without a penalty. 

After Age 59.5

You can start taking distributions from your 401(k) without incurring a penalty once you reach the age of 59.5.

If you are still working for the company after 59.5, you can take distributions but still continue to contribute to the plan. This allows for flexibility in managing retirement funds while still being able to grow your savings.

Summary

So, a 401(k) plan is a retirement savings account that offers tax advantages and additional earnings from the company if you participate. Your employer matches 50% of your contributions up to a $1,000 maximum per year. You can borrow from your 401(k) and start taking distributions without penalties after age 59.5, even if you remain employed and continue contributing to the plan.

Eligibility

Three months after you start, at the next quarterly enrollment date, we will automatically take 3% out of your check, pretax, unless you elect not to do so. We send you contribution paperwork one week before your eligibility date, you must complete it with any other contribution other than 3%, or opt out. If you wish to change your deduction at any time, you will request another form from HR, complete it, and send it back to HR.

What is a 401(k) and why would you want one?

A 401(k) retirement account is a much better deal than a savings account, because it can earn more interest AND because your employer contributes, up to $1,000 of free money per year. But it’s not the best plan if you want to take the money out before age 59.5. If you want access to your money, it's better to have a regular savings account.

You can only take out the money before retirement age if you leave the company. You’ll request a “distribution form” and you’ll lose at least a third (1/3 or 33%) of your money, with federal and state taxes and early withdrawal fees.

You cannot take money out of the plan while still employed with our company if you have not reached the retirement age of 59.5. However, there are exceptions that would allow you to apply for a "hardship" for extenuating circumstances such as medical expenses, eviction, home foreclosure, higher education and home purchase.

You can "roll over" money from another 401(k) plan into this plan as soon as you start working with us (you do not have to wait for standard eligibility). Request HR send you AMS Rollover Form to do this.

Are part-timers eligible?

​As of the 2024 Plan year, if you're a Long-Term Part-Time (LTPT) employee, you will become eligible to participate.​ LTPT employees are those who have worked for three consecutive years (beginning in 2021) with 500 to 999 hours of service each year. This change represents an expansion of eligibility, allowing more part-time workers to save for retirement. However note that if you're a part-timer, you will not be eligible for employer contribution.

Why should you participate? A note from Cynthia VanBibber ...

"I am a HUGE fan of the 401k plan. And I hope you’ll participate too. Why? Because of the unforeseen: you will one day not be able to work, and it will likely NOT be your choice.

Social Security will not be enough, and likely, like me you will wait until the last minute when retirement is just around the corner, and saving enough will HURT.

So start now.

1. Here’s reason number 1:

Please visit this link.

If you want to be a millionaire by age 65, and you start at age 20, you’ll need to save $364 a month. But if you start at age 50, you’ll need to save $3,439 a month (yeah right)!

So maybe you don’t need a million to retire comfortably; well, divide those figures by how much of a million you want: 20% of that? Save $91 a month when you’re 20 — it’s the same as $860 at age 50. You choose.

2. Reason number 2:

Free money. American Stone pays $1,000 to you when you contribute $2000 or more a year.

3. Reason number 3:

You cannot save at the same rate in your bank account. The rate of return varies depending on how you invest, but mine is running at around 25% per year, currently (2019 and 2020 figures).

4. Caviats:

I hope to encourage you to do the right thing for your financial future. However, your results will be different depending on which investments you elect. 

5. Understand the Limitations:

You should know the limitations of the plan as well: you CANNOT withdraw money from the plan until you are 59.5. The only other way to “take a distribution” (or to get your money out) is to leave the company. When you do this, before retirement age, you will pay a mandatory 20% federal withholding and 10% early withdrawal penalty, a distribution fee, a check fee, and applicable state taxes, i.e. don’t do it.

The whole purpose of this plan is to take the money burning a hole in your pocket out of your hands, and lock it away for retirement. If you need money ahead of time, you can take a loan for 1/2 of your own money plus vested balance (“vesting" is when the money from the company becomes yours, 100% after 3 years).

.... Cynthia VanBibber, HR Manager

Future Plan 401(K) Logging In

Go to the "Future Plan Login" address in th external links, or copy and paste this link in your browser: https://login.futureplan.com/

When you first visit the Future Plan login, your username is your social security number without hyphens.

Your password is your date of birth in 8-digit format: MMDDYYYY

If you cannot log in, you'll call the number on the screen. There are translators who can help you if you don't speak English well.

For details on any of these plans, reach out to Human Resources. You'll also see a link to the Future Plan 401(k) document in this section.

See the Qualified Default Investment Alternative (QDIA) Notice for the 2021 plan year in the attachments.

Loans

You can take out a loan from your 401(k) for a house payment, or medical expenses, etc. There is an initial fee (this updates from time-to-time, so you can check with HR for the latest fees), but it's almost always a savings over paying for things with a credit card. The interest you pay, is back to yourself.

Getting a loan processes can take a bit of time, normally 10 days to two weeks. For an expedite fee, you can get processing done in a couple of days and have a check overnighted to you. ACH / Wire is not an option because Future Plan is no longer allowing this due to fraud attempts.

Reference Documents

The Participant Disclosure provides detailed information about the American Stone 401(k) Plan for participants. It outlines the plan's fees, expenses, and investment options. The notice explains various administrative and individual expenses that may be charged to participant accounts. It presents a comparative chart showing the performance of available investment options compared to benchmarks. The document also includes information on investment fees and expense ratios for each fund option. Additionally, it covers topics such as investment advice, transfer restrictions, and the importance of diversification. ​The purpose of this disclosure is to help plan participants make informed decisions about their retirement savings and investments within the 401(k) plan.

The Summary of Material Modification informs (effective April 1, 2018) of the is an automatic enrollment of eligible participants (upon eligibility) at 3% of their compensation, unless they make a different election.​ If you decide this is not something that you wanted, you have 90 days to withdraw without a penalty, but you will need to contact HR as soon as possible to initiate this process.

This CNN Article is about "How to Become a Millionaire." The number one factor is when you start saving! And the longer you wait, the harder it is to save enough.

The Qualified Default Investment Alternative Notice defines where we will put your money by default if you don't specify. But you have the option to update it at any time. (Reach out to HR for a form).

​This 2024 Plan Year Notification provides an annual notice to eligible employees regarding the American Stone 401(k) Plan for the 2024 plan year.​ It outlines key information about employee contributions, automatic enrollment features, employer contributions, vesting schedules, and distribution provisions. The notice also includes a 2024 supplement explaining new rules for Long-Term Part-Time (LTPT) employees who will become eligible to make deferrals to the plan but not receive employer contributions.

Also in the external links below, you will see the URL where you can log in to view and update your elections (You can update your elections yourself, even without notifying HR). HOWEVER, you cannot update your contribution amount -- despite that it appears you can. Reach out to HR for a form to do this.

Benefits not covered in URock because they might not apply to all employees are include in this Knowledge Article on American Stone Employee Benefits.

Future Plan offers Calculators to help you figure out based on your goals when you should be saving and when to start.

—en español—

Nuestra página de beneficios se trasladó: https://urock.american-stone.com/slides/slide/american-stone-y-star-stone-beneficios-610

Una cuenta de jubilación 401(k) es mucho mejor que una cuenta de ahorros, porque puede ganar más intereses Y porque su empleador contribuye hasta $1,000 de dinero gratis por año. Pero NO es un gran negocio si planea retirar el dinero antes de los 59,5 años. Si desea acceder a su dinero, es mejor tener una cuenta de ahorros regular.

Solo puede retirar el dinero antes de la edad de jubilación si abandona la empresa. Solicitará un "formulario de distribución" y perderá al menos un tercio (1/3 o 33 %) de su dinero, con impuestos federales y estatales y cargos por retiro anticipado.

Puede "transferir" dinero de otro plan 401(k) a este plan. Descargue el formulario de transferencia de AMS para hacer esto.

Una nota de Cynthia VanBibber...

    "Soy una GRAN admirad+ora del plan 401k. Y espero que tú también participes***. ¿Por qué? Debido a lo imprevisto: algún día no podrás trabajar y probablemente NO sea tu elección.

    El Seguro Social no será suficiente, y probablemente, como yo, esperarás hasta el último minuto, cuando la jubilación esté a la vuelta de la esquina, y ahorrar lo suficiente DOLERÁ.

Así que empieza ahora.

1. Aquí está la razón número 1:

Si quiere ser millonario a los 65 años y comienza a los 20, deberá ahorrar $364 al mes. ¡Pero si comienza a los 50 años, deberá ahorrar $ 3,439 por mes (sí, claro)

Así que tal vez no necesites un millón para jubilarte cómodamente; bueno, divide esas cifras entre cuánto de un millón quieres: ¿20% de eso? Ahorre $91 al mes cuando tenga 20 años; es lo mismo que $860 a los 50 años. Usted elige.

2. Razón número 2:

Dinero gratis. American Stone le paga $1,000 cuando aporta $2000 o más al año.

3. Razón número 3

No puede ahorrar a la misma tasa en su cuenta bancaria. La tasa de rendimiento varía según cómo invierta, pero la mía está rondando el 25 % anual actualmente (cifras de 2019 y 2020).

4. Precaución:

Espero alentarlo a que haga lo correcto para su futuro financiero, pero ***no soy una experta en finanzas***. Sus resultados serán diferentes. Hay tarifas adicionales involucradas; estas son normales en un plan 401k.

5. Mi propósito es informarle sobre los beneficios que ofrece American Stone / Star Stone

También debe conocer las limitaciones del plan: NO PUEDE retirar dinero del plan hasta que tenga 59.5 años. La única otra forma de "tomar una distribución" (o sacar su dinero) es dejar la empresa. Cuando haga esto, antes de la edad de jubilación, pagará una retención federal obligatoria del 20 % y una multa por retiro anticipado del 10 %, una tarifa de distribución, una comisión de cheque, y los impuestos estatales correspondientes, es decir, no lo haga.

El objetivo de este plan es sacar de sus manos el dinero que le está haciendo un agujero en el bolsillo y guardarlo para su jubilación. Si necesita dinero con anticipación, puede tomar un préstamo por la mitad de su propio dinero más el saldo adquirido ("adjudicación" es cuando el dinero de la empresa pasa a ser suyo, 100 % después de 3 años).

6. Hay detalles sobre el plan que querrá buscar. 

Esto se cubre en nuestra capacitación del Día 1 en el enlace eLearning de Odoo. Echale un vistazo. También hay enlaces a dónde iniciar sesión para ver su saldo.

.... Cynthia VanBibber, Gerente de Recursos Humanos

Plan Futuro 401(k) Inicio de sesión

Cuando visita por primera vez el inicio de sesión de Future Plan, su nombre de usuario es su número de seguro social sin guiones.

Tu contraseña es tu fecha de nacimiento en formato de 8 dígitos: MMDDAAAA

Si no puede iniciar sesión, llamará al número que aparece en la pantalla. Hay traductores que pueden ayudarte si no hablas bien inglés.

Para obtener detalles sobre cualquiera de estos planes, comuníquese con Recursos Humanos. También verá un enlace al documento Future Plan 401(k) en esta sección.

Consulte el Aviso de la alternativa de inversión predeterminada calificada (QDIA) para el año del plan 2021 en los archivos adjuntos.