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403(b)(9) General Overview
Reliant now offers a 403(b)(9) retirement plan option (previously 401(k) was offered) to eligible employees. We have chosen the 403(b)(9) option which is a retirement church saving plan managed by Principal Financial Group. Just like many 401K/403B plans Reliant's 403(b)(9) retirement plan has a matching incentive. Reliant will match funds (up to a certain percentage)
What is a 401k?
A 401(k) plan is a retirement saving plan offered by employers for their employees.
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Getting Started Saving for Retirement
After 1 year of service with Reliant, you’ll be automatically enrolled in the 401(k) retirement savings plan.
Reliant will auto-enroll you in the 401(k) plan starting at $50/month on the next corresponding quarterly enrollment date after your one-year anniversary date as a Reliant employee. We will deduct $50 from your paycheck and deposit it into a 401(k) retirement savings account with the Principal Financial Group.
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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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“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. |
How will this effect my MTD Goal?
You will have to raise the extra $ for the employer match and it will increase your support goal.
Why would you want to participate and raise the extra funds?
The advantage of a 401(k) plan vs. personal investing/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). That’s smart!
Investment Options
The 401(k) Plan has over 20 different investment options for you to choose how your money is invested.
You can also select a Principal Lifetime Fund that will select the investments for you, and will invest your $ in investment options that have appropriate risk and diversity based on your expected retirement date.
Traditional vs. Roth
You have 2 choices for the portion of the 401(k) contribution that that’s deducted directly from your paycheck.
Traditional “Pre-tax” 401(k) contributions: The money you invest in the Traditional 401(k) plan (from your monthly paychecks) is not taxed by the government at this time. You will pay taxes on this invested money (plus any interest you make on that $) when you withdraw the funds at retirement.
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Traditional 401k Contribution Example Year wages = $20,000 |
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