Reliant offers matching contributions up to 5% of your eligible earnings. “Ineligible” earnings such as your ministry expense bonus, taxable reimbursements, and wages earned prior to your 401(k) plan entry date are not eligible for the 5% employer match.
Do I get to take the match with me if I leave employment with Reliant?
Yes, participants in the 401(k) Plan are immediately 100% "vested," which means the employer match contributions are fully transferable (into another retirement account with your new employer or an IRA), should you exit employment with Reliant.
How will the match affect my MTD Goal?
Match contributions are charged directly to the MTD account the employee is responsible for with Reliant. You will have to raise the extra money for the employer match, and it will increase your support goal.
What is the advantage of a 401(k) vs. personal saving in an IRA?
The advantage of a 401(k) plan versus personal investing or saving is the employer match does not get taxed (until you retire and withdraw it). So, the match enables you to save extra money (on top of any money you save through other methods) towards your retirement.
It’s like opting to receive a special bonus every month that goes directly into your retirement savings account and that the government doesn’t tax you on (until retirement).
Plus, 401(k) Plans can often negotiate lower fees for the investments offered in their plans vs. the employees buying the same investments personally in their IRAs. 401(k) Plans have the buying power of a larger group,so they're able to negotiate lower fees for the investments, because they're buying in "bulk." It's kind of like shopping at a "big box" store.
