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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!

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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! 

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

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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.

White Belt

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!

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Yellow Belt

The Basics - Knowing your Account Balance 

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!

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Green Belt

Moving up to Intermediate Status

At the point a karate student begins to refine the basic skills they’ve learned.  It indicates they have advanced to intermediate status.

Research has shown that people who have a clear picture of what they want their retirement to look like are much more successful in recahing their retrirement goals. 

Take 10 minutes to journal or think through and pray about these questions:

  1. When do I want to retire?
  2. What do I want my retirement to look like?
  3. What steps do I need to take to create/sharpen my financial saving habits?

Finished?  Congrats, you're a green belt!

Blue Belt

Gaining Wisdom and Understanding

The Blue belt symbolizes the karate student is growing a deeper understanding of karate and is beginning to display leadership qualities. 

Our challenge for this level is to look through the resources available at Principal.com under Planning Resources.  If you haven;'t already done so, fill out the Retirement Wellness Planner and see how yuo score.  If you land in the red or yellow zones, try playing around with the tool to see how your score would change if you increased your 401(k) contributions - even better, make a change and increase your contrbution when prompted!   

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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 employees 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 403(b)(9) 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/increase their retirement 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 the MTD account. They will be eligible for a different type of employer contribution that will be determined by their support goal and employment parameters. (More information to come on this contribution). 
    • 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. (Good news...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 feature in our new plan!


Employer Match/Employer Contributions:

  • All Reliant employees currently receive an automatic employer match for their payroll contributions. The match is paid 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 that we currently offer 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 403(b)(9) 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 and taxes may apply for this option), or keep the funds in the 403(b)(9) plan with Principal Financial Group.

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 currently has had to go through to incorporate this feature into our existing 401(k) plan. 

Withdrawals 

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Brown Belt

Maturity

The brown color in karate belts represents that student's skills are mature and close to being mastered.

It's time to make sure you are preparing well for not only your future but the future of your loved ones and dependants.  Take some time to review you beneficary on file with Principal under Overview>Beneficiary. make surte it's up to date.  

Need a Will or other legal forms for your Estate planning? Visit the Principal Milestones page udner the Planning Resources and select > Will and legal document center powered by ARAG®  

Black Belt

Master Status

The black belt shows that the person wearing it has mastered all the skills and poses a great ability to enlighten others with his/her knowledge.

Did you learn anything from this 401(k) Month?  If so - share what you learned! A great way to help others in their journey of saving for retirement is to share the lessons you're learing, ask them to hold you accountable in your next steps, and ask how you can help them with their goals!   

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Drawing & Prize Info

Reliant will send out Crubl cookie packages or gift cards (valued at $30) to 4 lucky winners (details will be coordinated with Reliant Central directly with the winner).