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Overview
Reliant provides an employer sponsored contribution plan called a 401(k) plan. This plan is similar to an individual retirement account (IRA) except that only employers may establish a 401(k) plan for employees through their payroll.
Reliant's 401(k) Plan offers two types of savings opportunities for our employees - a traditional 401(k) and a Roth 401(k). The Traditional 401(k) Plan allows employees to save money for retirement while deferring federal, state, and in some cases local taxes on the amount invested. The Roth 401(k) Plan does not offer tax savings at the point contributions are made to the retirement plan, but, the employee's Roth contributions as well as the interest and dividends earned while invested in the plan are not subject to federal and/or state income taxation at the point of withdrawal (at retirement - age 59½ or above).
If withdrawals are made to either of these 401(k) Plan Retirement accounts prior to age 59½ the employee may incur tax penalties. Employees who have worked for Reliant at least 1 year may be eligible to begin participating in the 401(k) plan (previous internships and employment with Reliant may apply toward eligibility). Upon becoming eligible to participate, employees will receive an enrollment packet from the Reliant Finance Department. For questions or additional information about Reliant's 401(k) Plan please contact the Finance Department.
What is a 401k?
A 401(k) plan is a retirement saving plan offered by employers for their employees.
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Many 401(k) plans have a matching incentive where an employer will match funds that their employees contribute to the 401(k) plan. The matching incentive is designed to motivate employees to contribute funds to the retirement savings plan.
Traditional vs. Roth Contributions
You have 2 choices for the portion of the 401(k) contribution that that’s deducted directly from your paycheck.
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Roth tax savings do not apply to the employer match and interest earned on the match. |
Getting Started Saving for Retirement
After 1 year of service with Reliant, you’ll be automatically enrolled in the 401(k) retirement savings plan.
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You will have the option to log on to Principal.com and change your contribution amount at any time. |
Important things to know about the 401k plan
Reliant offers matching your contributions up to 5% of your salary!
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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). That’s smart!
Investment Options
The 401(k) Plan has over 20 different investment options for you to choose how your money is invested.
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