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Our BIG announcement for this year's 401(k) Month is we're going to be transferred Reliant's 401(k) plan into a special church retirement plan called a 403(b)(9) plan starting on 1/1/2024. This change is probably the most significant change we've made to our retirement plan since we added a Roth contribution.

Over the next month, which we're re-naming "403(b)(9) Month", we're going to outline and explain this new retirement plan's benefits one piece at a time.

In the spirit of this year's Lego construction theme, we understand this news may feel like we just dumped a bag of legos on a table. You likely have a lot of questions starting primarily with "How does this affect my retirement savings options?" We want to assure you your retirement savings is in good hands!

The 403(b)(9) plan will be extremely similar to our current 401(k) plan, with a few added perks. See the table below for a side-by-side comparison of key features of the new 403(b)(9) plan vs. the existing 401(k) Plan.

The 403(b)(9) is especially designed for religious-based 501(c)(3) non-profit groups and churches. It allows Reliant greater flexibility to customize our retirement plan based on the types of employees we have working for Reliant and their retirement planning needs. 

Please follow along with us this month as we construct this new plan and highlight it's features. We will also offer some fun prizes along the way! 

Drawing & Prize Info

Fill out this Google Form and we'll enter you in the drawing for a Lego Christmas ornament book and our $100 Amazon Gift Card grand prize. Prizes will be coordinated with the employee based on their specific location/delivery preferences. 


403(b)(9) vs 401(k) Side-by-Side Comparison of key features


Reliant's NEW 403(b)(9) Plan features:

Reliant's existing 401(k) Plan features:

Eligibility:

  • NEW/CHANGE: Reliant employes will be eligible for the 403(b)(9) plan after 3 months of employment

Eligibility:

  • Reliant employees are currently eligible for the 401(k) plan after 1 year of employment 


Auto-Enrollment:

  • NEW/CHANGE: Reliant will be classifying groups of employees differently for purposes of auto-enrollment.
    • Certain employee groups (the Fixed term program team and potentially some other groups) will no longer be auto-enrolled at $50 a month. These employees will still be eligible to contribute to the 401(k) plan at their own discretion.
    • Most other employees will continue to be auto-enrolled at $50 a month when they become eligible for the 403(b)(9)Plan. Employees that are auto-enrolled will still be notified and given instructions for how to edit/change their contribution amount anytime on https://www.principal.com/. 

Auto-Enrollment:

  • All Reliant employees were previously auto-enrolled at $50 a month (prior to 9/1/23 when auto-enrollment was paused pending our transfer to the 403(b)(9) plan). Eligible employees can change their contribution amount anytime on https://www.principal.com/). 

Employer Match/Employer Contributions:

  •  NEW/CHANGE: Reliant will be classifying groups of employees differently for purposes of the employer contribution (paid from the MTD account).
    • Certain employee groups (the Fixed term program team and potentially some other groups) will no longer be matched 5% in employer contributions from their MTD account. They will be eligible for a different type of employer contribution that will be determined by their support goal and employment parameters. 
    • Most other employees will continue to receive an automatic employer match for their contributions. This match will still be paid out of the MTD account, up to a maximum of 5% of the employee's eligible wages (shortcheck will no longer affect their match amount).
    • Reliant will also have the ability to creatively allow additional employer contributions to be made into employee 403(b)(9) accounts, at the discretion of Reliant's management team. This is a new feature and is something Reliant will continue to explore. No immediate plans are in place for utilizing this feature but we are excited to have this functionality in our new plan!


Employer Match/Employer Contributions:

  • All Reliant employees currently receive an automatic employer match for their contributions, that is paid for from the MTD account, up to a maximum of 5% of their eligible wages (shortcheck currently affects the match amount)

Roth Contributions:

  • No change. The 403(b)(9) Plan allows employees to make ROTH contributions from their paychecks into the plan just like the 401(k) plan allowed. (Note: Reliant's employer contributions will remain pre-tax.) 
  • For additonal info on Roth see Traditional vs. Roth Contributions.

Roth Contributions:

  • The 401(k) Plan allows employees to make ROTH contributions from their paychecks into the plan. (Note: Reliant's employer contributions are pre-tax contributions.)
  • For additonal info on Roth see Traditional vs. Roth Contributions.

Loans:

  • No change. The 403(b)(9) Plan will allow loans based on the same guidelines: Loans

Loans:

  • Employees are currently eligible for loans based on the following guidelines: Loans

Investments:

  • No change. Reliant will continue to offer the same funds and investment options with Principal Financial Group. 
  • See Investment Optionsfor more information.

Investments:

  • Reliant currently offers a variety of investment options that employees can elect themselves or they can choose the "autopilot" option of a Principal Lifetime fund that is managed by Principal with a diversified mix of investments that tailors risk and investment choices based on the employees retirement age. See Investment Options for more information.

Vesting:

  • No change. Reliant will continue to offer the same 100% vesting of employer contributions to employees upon eligibility into the 403(b)(9) plan.
  • See Vesting Schedule for more information.

Vesting:

  • All Reliant employees are 100% vested from the point they start contributing to the 401(k) Plan. See Vesting Schedule for more information.

Rollovers: 

  • No change. 
  • Upon becoming eligible for the 403(b)(9) Plan, employees will be eligible to roll-in funds from other retirement plans (as long as their old plan rules allow for the rollover). See Rollover Funds to Reliant's 401(k) Plan from a Previous Retirement Plan for more information.
  • Upon exiting employment with Reliant, an employee will be eligible to roll over the funds from their 403(b)(9) plan into an IRA, into another retirement plan (as long as the new plan rules allow for the rollover), cash out their 403(b)(9) plan (certain penalties may apply for this option), or keep the funds in the 403(b)(9) plan.

Rollovers: 

Withdrawals 

  • No change. 
  • Reliant will still offer regular withdrawals at age 59 1/2 or higher - See Withdrawal (Age 59 1/2 or Higher)
  • Reliant will still offer parsonage withdrawals for commissioned/ordained ministers at age 59 1/2 or higher - See Withdrawal as Parsonage (Age 59 1/2 or Older ) for more information.
  • Note NEW IMPROVEMENT*Parsonage withdrawals will become easier for Reliant and our minister employees due to the 403(b)(9) plan's specific setup that's designed with churches in mind. Under the 403(b)(9) plan, parsonage withdrawals are "built-in" as basic functionality within the plan, vs. the additional steps Reliant has had to go through to incorporate these into our existing 401(k) plan. 

Withdrawals