Frequently Asked Questions

Top Asked Questions

How do I enroll in my company’s 401(k) plan?

The easiest way to enroll is online. Click on the Enroll button at the top of the Slavic401k.com website and follow the prompts to enroll in your company’s plan. You will need to provide your name, date of birth, social security number and employment information before you are able to select your contributions.

After you enroll in your company’s 401(k) plan, you will also need to register for online access to your account. You can do this by clicking the Login button at the top of Slavic401k.com and following the prompts to set up your login credentials. Once complete, you can access your account through our website and mobile app.

How do I sign up for online account access?

In order to sign up for online access to your account, you must first enroll in your company’s 401(k) plan. If you have not previously enrolled, please click on the Enroll button at the top of Slavic401k.com and follow the prompts to complete your enrollment.

Once enrolled, click on the Login button at the top of Slavic401k.com and follow the prompts to set up your login credentials. Once both processes are complete, you can access your account through our website and mobile app.

What do I do if I forget my password?

To reset your password, click on the Forgot Password link on the Slavic401k.com login screen to reset your password.

What are the plan contribution limits for 2022?

Below are the contribution limits for retirement plans in 2022 as defined by the IRS:

  • The maximum “annual addition” limit for a defined contribution plan is $61,000 in 2022 (increased from $58,000 in 2021)
  • The elective deferral limit for 401(k), 403(b) and 457(b) plans is $20,500 in 2022 (increased from $19,500 in 2021).
  • Catch-up contributions for employees age 50 and over remain the same at $6,500.

Security

Why is multifactor authentication necessary?

We require multifactor authentication for all Slavic401k accounts. Multifactor authentication is one of the security measures we use to help ensure your money and account stay safe from cyber criminals and unwanted access by anyone other than yourself.

How does multifactor authentication work?

When you sign up for online access to your 401(k) account, you are required to provide a mobile phone number. When you login, we send a text message containing a unique confirmation code to your phone, as a secondary layer of protection for your account should an unauthorized person gain access to your login credentials. Once you type in the confirmation code, you will be able to access your account.

Currently, multifactor authorization requires that you provide a mobile phone number and cannot use your email address as a second layer of authentication.

How do I know my account information is secure?

The account information and transaction areas use Secure Socket Layer (SSL) encryption to ensure that your account information is not accessible to others. You are also required to use a multifactor authentication personal identification number (PIN) to access your specific account information.

Withdrawals

How does the distribution (withdrawal) process work?

You can submit a distribution request either online through the participant portal, or using the paper form (which can be emailed, faxed, or mailed to Slavic401k for processing).

After you request a distribution, we must confirm your eligibility, the accuracy of your request, and receive employment verification and distribution approval from your PEO/employer. Once approved, we trade or request the funds from the market for your distribution and then either mail or transfer your money to you online via ACH. How much time it takes for you to receive your distribution varies depending on how quickly we receive the required approvals and the delivery method you choose to receive your funds.

How are taxes calculated when I take a distribution from my 401(k) account?

If you withdraw money from your 401(k) account before age 59 ½, you must pay a 10% early withdrawal penalty in addition to income tax on the distribution. For someone in the 24% tax bracket, a $5,000 early 401(k) withdrawal will cost $1,700 in taxes and penalties.

If you are not taking an early withdrawal, you only pay income taxes on the distribution. The amount of taxes you pay is subject to your individual income tax bracket. View IRS tax brackets here.

Can I take money out of the plan if I am no longer participating?

IRS regulations prevent taking a distribution if the private employer organization or your participating employer still employs you. Once you terminate your employment, and separate from both your employer and payroll company/plan sponsor/PEO, you may withdraw your vested balance.

Can I withdraw money from my account while I am still working?

There are several options for withdrawals while you are still employed. The list below provides a description for each.

Loans

Taking out a loan simply means borrowing money from your 401(k). You pay yourself back, with interest (based on the current interest rate). Loan payments are taken directly out of your paycheck. The maximum that you can borrow from your 401(k) is 50% of your vested balance, up to $50,000. The minimum that you can borrow is $1000, which requires a vested balance of at least $2000. If you should terminate your employment, you have 60 days to payoff loan. If you fail to pay back the loan, the outstanding loan balance will be subject to current income taxes as well as a 10% early withdrawal penalty. Taking out a loan from your 401(k) does not require a credit check.

Hardship

If you cannot take out a loan, you may qualify for financial hardship. Proof of hardship occurring in the past 12 months and the amount owed are required. Once a hardship withdrawal is approved, your normal retirement contributions are stopped for six months. It is your responsibility to start contributions again. When it comes to this type of withdrawal, you are only eligible to withdraw from contributions you have made to your 401(k) (EE deferrals), not your employer’s match.

According to the IRS, a hardship withdrawal is permitted for the following reasons:

  • Medical expenses not covered by insurance for the participant, the participant’s spouse the participant’s dependents or the participant’s primary beneficiary.>
  • Costs directly related to the purchase of a principal residence (not including mortgage payments) for the participant. A renovation or remodeling is not a sufficient reason for this requirement. The residence may not be for a family member or for a second or vacation home, but must be the primary residence of the participant.
  • Payments for tuition, related educational fees and room and board expenses, for the next 12 months of postsecondary education for the participant, the participant’s spouse, the participant’s children, the participant’s dependents or the participant’s primary beneficiary.
  • Payments to prevent eviction from the participant’s principal residence, or to prevent foreclosure on the mortgage on principal residence.
  • Payments for burial or funeral expenses for the participant’s deceased parent, spouse, children, dependents or the participant’s primary beneficiary.
  • Expenses related to damage to a principal residence that would qualify for a casualty deduction under section 165, without the limitations in section 165(h)(5).
  • Expenses incurred as a result of FEMA declared disaster, provided the participant’s principal place of employment or residence is located in the disaster area.

In-service Distribution

When an active employee reaches age 59 ½ the plan may offer an in‐service withdrawal option of participants elective deferrals and/or employer contributions. The Slavic401k plan document allows for in‐service withdrawal once a month during a plan year (effective January 1, 2019). An employee can withdraw his/her elective deferrals, matching and profit sharing contributions if 100% vested. Employees have an option to do a direct rollover of this withdrawal. If the withdrawal is not directly rolled over, the distribution will be subject to 20% federal income tax (unless the distribution is coming from a Roth 401(k)). No 10% penalty applies.

Unrelated Source Distribution

An unrelated source distribution, often referred to as an unrelated rollover distribution, comes from funds that were rolled over from a previous employer. Participants can request a distribution from these funds at any time. Any distributions taken to yourself will be subject to a mandatory 20% federal income tax (unless they are coming from a Roth portion). You may be subject to a 10% early withdrawal penalty if you are under the age of 59 ½. If you chose to roll over these funds directly into another 401(k) or IRA, no taxes or penalties apply.

When are trades or changes made?

Exchange orders submitted before 4 p.m. EST and are traded the same day on a best effort basis. Exchange orders submitted by fax, mail, or via internet after 4 p.m. EST will be traded the next business day. The next business day policy is guaranteed only if the mutual fund companies and clearing broker involved settle the trade by the next business day (T+1) or if less than 2,500,000,000 shares are traded on the NASDAQ exchange on the day you place your order or on the day after. If trading volume on the NASDAQ exceeds the limit or the outside parties cannot settle the trade as specified, your order will be processed on a best efforts basis and Slavic401k will not be responsible for the timing, only the accuracy of your trade. This policy is not effective for John Hancock, Lincoln, or Deutsche plans and those participants will continue to make trade requests directly to those companies. The above policy is still subject to the 14 day error notification policy following the mailing of your statement. To receive compensation for any trading error, you must notify Slavic401k in a timely fashion to allow for correction to minimize damages, if any.

Effective immediately, all Vanguard funds, with the exception of the Money Market funds, Short-Term Federal and Short-Term Bond Index, restrict participants from transferring out of a fund and back into the same fund within 30 days.

Managing Your Account

How do I change my investment allocations?

How do I change my investment allocations?

  • Login to your online account at www.slavic401k.com
  • Select Manage Investments under the Manage tab in the upper navigation bar
  • Select Change Elections
  • Allocate the elections you wish to invest in and make sure they all add up to 100%
  • Submit

*Note: this will not change your current assets; this is just for changing where your future contributions will be allocated. If you would also, like your current assets to be moved into your new investment allocation you must select yes on the transfer section*

What is Email Express?

Email Express is a weekly email to receive your 401(k) balance. It also includes helpful blog posts, tips and market commentary to help you reach your retirement goals.

To begin receiving Email Express, please log in to your account and subscribe here.

Is Slavic401k compatible with third-party aggregators that allows you to consolidate your financial information into a single platform?

Not at this time.

Is there a Slavic 401(k) mobile application?

We currently have a mobile app in development that is scheduled to launch in early 2022.

How can I download my transactions into my financial planning software?

In order to download your transactions into Quicken:

  1. Log in to your account at: www.slavic401k.com
  2. From the top menu, under Transactions, select Transaction History
  3. On the bottom of the page, click the button marked “Download Transactions to Quicken”
  4. Select a date in the box marked “Include account history from.” This will include data from that date to today.
  5. Click the button marked “Download to Quicken.”

That page also includes further requirements and instructions for downloading the file and importing it into Quicken.

Plan Administration

What is the difference between a Pre-Tax 401(k) and a Roth 401(k)?

The difference between the two types of investments is when you are taxed. Pre-tax contributions and earnings are taxed when you withdraw it. If you need to withdraw money prior to age 59½ you may incur a 10% withdrawal penalty, in addition to owing current income taxes.

Roth contributions are taxed before they are invested. You do not pay taxes when withdrawing, however, if the Roth account is in place for less than five years, you are not at least 59 ½ when you withdraws the funds, you will pay taxes on any gains.

Both Pre-Tax and Roth contributions are calculated from the gross salary.

**At Slavic401k, we do not offer plans that allow “after-tax” contributions.

What online reports are available for employers and sponsors?

There are many different reports for employers and sponsors online. Whether you need asset, audit, contributions, distributions, employer information or participant information reports, we have dozens available to you within the sponsor portal.  

What is a safe harbor 401(k) plan?

A safe harbor 401(k) plan provides all eligible plan participants with an employer contribution. In exchange, safe harbor plans allow employers to avoid annual IRS non-discrimination testing, which can be costly for employers. Any 401(k) plan can be set up to include a safe harbor contribution. 

How much money can I put into my 401(k) account?

The maximum pre-tax contribution dollar amount is set by the IRS and adjusted for inflation annually. If you are age 50 or older, you may also make an additional catch-up contribution. View the current IRS contribution limits here.

In addition, there are special non-discrimination rules that apply to the plan. If you are a highly compensated employee, or own more than five percent of the company, contribution caps may apply.

What pre-tax percentage should I invest when I am starting out?

The more you can save the better. You should maximize your company’s match if one is available and contribute as much as you can afford to budget. This will help you take full advantage of the tax deferral.

How do I transfer my 401(k) account with my former employer into my new 401(k) plan?

Log in to your Slavic401k account and download our ‘Rollover into Slavic401k/PlanRight Form’ located on the Forms page. Please fill out the required information and return it to us.

How long will it take for my 401(k) plan to be transferred to Slavic401k?

It typically takes 60-90 days for the transfer to take place. Your account will remain fully invested until the funds are transferred. When the transfer takes place, you will be un-invested for a few days while the accounting and assets are reconciled and invested in the new plan.

Why do we have two plans?

Your PEO may have an old frozen, single employer plan that is not compatible with the new multiple employer plan. Because they are different types of plans, the regulations prevent them from being merged and the assets must remain separate. If you have a balance in both plans, you will receive two statements in separate mailings.

My Contributions

I signed up for my employer’s 401(k) plan. When do my contributions begin?

Your first contribution depends on the following:

  • Meeting eligibility requirements
  • The plan entry requirements (Quarterly, Monthly, Immediate)
  • Completed enrollment form
  • Payroll processing time
How can I calculate my contribution rate?

To calculate how much your contributions will affect your take home pay, you can start by multiplying your pay period income by your contribution rate to know how much money will be contributed to your 401(k) account each pay period.

For example, if your gross pay (the amount before any taxes or benefits deductions) is $1,000 and you contribute 10%, $100 is deducted from your pre-tax paycheck and deposited into your 401(k) account.

The $100 contribution to your 401(k) is deducted from your paycheck pre-tax, so the impact on your take home pay will be less than $100 as those funds are not taxable by the government.

I received my statement and the amount of contributions does not match the amount deducted on my pay stub – why?

Your payroll service transmits your deferral contribution as fast as administratively feasible and there is always a lag between the time it is deducted and when it appears on your cash basis statement. Your payroll service must compile a complete census data file, and reconcile the accounting, in order to submit each contribution. This reconciliation takes time because the file may include thousands of employees of different employers, and must be done without error to ensure plan compliance. Once the funds and the data file are received, it takes Slavic401k one to two business days to process the information and send the trade to the fund companies. The fund companies have up to three business days to settle the trade, after which you will see your contribution on your statement via the web.

Where is the money held if there is a delay in investing it?

As explained in the previous question, the compilation of the required data accompanying the contribution is a lengthy and complex process. Until this process is accomplished, your money remains with the plan sponsor. It cannot be invested until an electronic data file can be compiled and transmitted with the funds; after which the money is sent to a plan trust account at Slavic401k and then forwarded to the fund companies with an electronic trade file. This process usually takes one to two days at Slavic401k and during this period, interest does not accrue to you because trust accounts, by law, do not pay interest, nor does Slavic401k earn any interest on your money or remuneration of any kind. Your 401(k) plan has daily valuations and segregated accounts requiring advanced systems to provide you this information online. Your deferral is tested before it goes to the fund companies to ensure that eligibility is met, vesting is computed, and that you haven’t exceeded certain deferral limits. If the Sponsor could increase the frequency of transmissions, the cost of the plan may go up because more processing time would occur; that is a cost-benefit decision that the plan sponsor determines in establishing the frequency. For these reasons, your deferrals are being invested as cost-effectively and as fast as administratively feasible.

What happens to my 401(k) account balances if I choose to leave or am terminated from the company?

Your distribution options are the same whether you voluntarily leave or are terminated. If your account balance is more than $5,000, you can leave your money in the plan. If you want to take your money with you, your vested account balance can be rolled into another 401(k) plan with your employer or put into an IRA. There are no tax penalties when your 401(k) is rolled over. If you cash out your 401(k), there is a 20% tax and possible 10% penalty. If you have an unpaid loan and request a distribution to yourself, the loan will be deducted from your balance paid out and be subject to a 20% mandatory tax, and possible 10% early withdrawal penalty.

Fees

What fees are associated with my 401(k) account?

Annual recurring plan fees are deducted from participant accounts on a quarterly basis. Specific amounts vary from plan to plan.

These fees may cover the plan’s administrative expenses and service provider fees including IRS 5500 filings, record-keeping, accounting, legal, customer service and contribution processing. They are categorized as the following: fixed admin fee, asset based fees, and activity fees.

Our old 401(k) plan did not have any fees. Why do we have fees in the new plan?

All 401(k) plans have fees, including your old plan. Usually these fees consist of three parts:

  • Expense ratios of the investment options
  • An asset and administration fee
  • Third Party Administration (TPA) expenses paid directly by the employer

The first two categories of fees are almost always part of the ongoing expenses paid out of the account balances of the plan. Historically, most providers have not completely disclosed these costs to the participants. While it may appear that your old plan had no fees, the fact is they were not disclosed to you. It is common practice for 401(k) plan providers to net fees against investment earnings making them difficult to monitor.

Slavic401k is proud of the fact that we disclose all fees as a line item dollar amount on participant statements and on the website. Your new plan is fully transparent, and in most cases, significantly less in cost compared to your old plan.

Form 5500

When is my 5500 due?

Form 5500 Annual Return/Report is due the last day of the seventh month after the plan year ends (July 31 for a calendar year plan), with an additional 2 ½ months extension if Form 5558 Application for Extension of Time to File has been submitted (October 15th with an extension).

Slavic401k will file the Form 5558 Application for Extension of Time to File on your behalf if an extension is needed.

How do I know if I am a large plan filer?

A plan with fewer than 100 participants (on the first day of the plan year) that meets all of the eligibility conditions is considered a “small plan” filer and can file Form 5500-SF. A plan with more than 100 participants (on the first day of the plan year) is considered a “large plan” filer and must file Form 5500 and complete all applicable schedules and attachments.

NOTE: Pooled Employer Plans (PEPs) can only file the Form 5500 and are restricted from filing Form 5500-SF.

Who is considered a plan participant?

A plan participant is any employee eligible to participate in an employer’s retirement plan when certain eligibility conditions stated in the plan document are met. A participant is also an employee or former employee (terminated employee) of an employer who is or may become eligible to receive a benefit from an employee benefit plan. The number of participants at the beginning of the year determines which 5500 form must be filed.

What do I need to do if I am a large plan filer?

For those plans which do not fall under the notable exception (80/120 rule) and are considered a “large plan filer,” Scheduled H must be completed in addition to any other applicable schedules and attachments. Slavic401k will prepare a complete signature-ready Form 5500 for you to file with the EBSA.

An independent audit must be attached to the completed Form 5500 before it is electronically filed. The plan sponsor is responsible for engaging the author to prepare the independent audit.

To avoid penalties for failing to complete the Form 5500 or ramifications of filing late, plan sponsors should take the time to understand the requirements for a retirement plan audit well in advance of the filing deadline.

When can an audit be deferred?

An audit is required for large plan filers and may be deferred but not eliminated for plan years of seven (7) months or less (due to initial year of the plan, merger, or change of plan year). The short plan year does not eliminate the audit requirement; it only defers the audit requirement until the following year.

In the year in which the audit will be required, the audit will cover the full plan year and the short period. Additionally, Form 5500 must still be filed for the short plan year.

Will my 5500 be considered “filed” if I do not attach the independent auditor’s report to my Form 5500 annual return/report?

The IRS will receive your filing, but the DOL will send a Notice of Rejection (NOR), usually within a few weeks of submission. This notice informs the plan sponsor that the submission is “delinquent” and that the DOL will issue penalties if it is not corrected timely. The plan sponsor has 30 days from the date of the letter to respond. The plan sponsor can respond to the NOR, explain the circumstances of what is going on, and request an extension. Only during the NOR process can you request an extension and have a chance of avoiding a penalty.

Please note Schedule H, line 3 specifically asks for information regarding the plan’s independent auditor’s report. If you do not submit the required independent auditor’s report, these questions must still be answered correctly. If you have to file Form 5500 without the required independent auditor’s report, correct that error as soon as possible.

What happens if we don’t file timely?

Failure to file timely can result in significant DOL and IRS fees and penalties.

  • Internal Revenue Service: $250 per day, not to exceed $150,000
  • Department of Labor: Up to$2,259 for 2021 (subject to annual DOL adjustments) for each day the form is late with no overall maximum
Resources

Didn’t find what you were looking for? Contact us to gain more information.

We offer a wide variety of infographics, videos, calculators and more to provide as much information as possible.

Technology is at the forefront of everything we do. Our tools make managing money easier.

CLOSE