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Our BIG announcement for this year's 401(k) Month is we're going to be transferring Reliant's 401(k) plan into a special church (or organization with a 501c3 church status) retirement plan within Principal called a 403(b)(9) plan starting on 1/1/2024. This change is probably the most significant change we've made to our Reliant Retirement Plan since we added a Roth contribution.
Throughout September, which we're re-naming "403(b)(9) Month", we're going to outline and explain this new retirement plan's benefits and features 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 and told you this is your new retirement plan. 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 will continue to be 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 our new 403(b)(9) plan vs. the existing 401(k) Plan.
The 403(b)(9) is especially designed for church-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 its features. We will also offer some fun prizes along the way!
Is it a Privilege?
Is it a Responsibility?
Is it happening in your life and financial situation?
This year we're using a martial arts theme, asking people to progress from various belt levels of activities to get to a black belt status in financial planning. To simplify how many staged this will be we have 6 levels:
- White belt
- Yellow belt
- Orange belt
- Green belt
- Blue belt
- Brown belt
- Black belt
Drawing & Prize Info
Fill out this Google Form saying which belt(s) you've completed for this activity and and we'll enter you in the drawing for Crubl cookies - either delivered to you or a a gift card (alternatiove prizes are available based on location and/or allergy restrictions). For ever belt you pass you will earn more entries in our drawing.
Sign Up
A white belt is typically given out at the beginning of a person's martial arts journey.
With Reliant's auto-enroll feature, many employees let those monthly payroll amounts go into their 401(k) account and they've
never taken the time to logged in at Principal.com and set-up their login information to check the accoun balance etc.
- If you've already taken this step - you can check this box.
- If you've never taken this first step - see Registering at Principal.com and begin your journey today!
Finished? Congrats, you're a white belt!
Yellow BeltAccount Balance 101
With the yellow belt, the student is expected to develop fundamental karate skills.
Knowing how much is in your 401(k) account as well as how much you're adding to the account every month are key components to financial planning.
- Log-in to your Principal.com account, the account balance should be listed under Overview
- Select Contributions > Contributions Summary from the menu at the top of the page - This will show you how much you're saving Pre-Tax and Roth from yuor paychecks. The employer match is not listed in this box but under the "Contributions by date" box just below. It will be listed as "employer"
Finished? Congrats, you're a yellow belt!
Orange Belt
Practice. Learn. Repeat.
A orange karate belt color is awarded to the student who starts to demonstrate progress in learning
more about their bodies as well as more about the fundimentals of karate.
- Do you understand how Reliant's employer match works? Have you considered why investing with the 401(k) may be more advantageous than investing in an IRA, at least up to that matched amount? - Read this Solomon page and educate yourself on the 401(k) match - Employer Matching Contributions
Finished? Congrats, you're an orange belt!
Green BeltMoving to Intermediate
At the point a karte student begins to refine the basic skills they’ve learned so far, they advnace to intermediate status, and are awarded a grenn belt,
What steps do you need to take to create/sharpen your financial saving habits?
Blue Belt
Take time to evaluate how your plan is going (prior to this exercise).
What key indicators would indicate to you that your are being successful in your planning and saving?
Review those key indicators.
As you circle back on this model in future check-up times, continue evaluate how your plan is going.
What tweaks are needed to be successful?
Brown Belt
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:
| Eligibility:
|
Auto-Enrollment:
| Auto-Enrollment:
|
Employer Match/Employer Contributions:
| Employer Match/Employer Contributions:
|
Roth Contributions:
| Roth Contributions:
|
Loans:
| Loans:
|
Investments:
| Investments:
|
Vesting:
| Vesting:
|
Rollovers:
| Rollovers:
|
Withdrawals
| Withdrawals
|