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.
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.
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.
Please complete the MEP Exit Policy form and email it to the address listed on the form.
You will have a specialist assigned to the merge out within 7-10 business days after the date the request is received. A timeline for the merge out will be set and confirmed with the new TPA. The new TPA will send blackout notices. Plan assets are wired four business days after the liquidation date. The entire merge out process takes approximately 60 days to complete.
Please reach out to your assigned Account Representative and they will be happy to help. If you do not have an account representative, please call us at (800) 356-3009 for assistance.
Upon notification, Slavic401k will complete an Amendment Checklist. The checklist be converted into an amendment and submitted for compliance review. Once compliance review is complete, we will provide you with the amendment to sign. Once signed, the amendment will be finalized and executed.
To remove an authorized contact, please call us at (800) 356-3009.
Our Plan Sponsor Web Guide will help you understand what is available within the portal.
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.
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.
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.
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.
Adoption Agreement – this document includes: effective date of the plan, age, and service requirements, matching contribution formula if any, profit sharing allocation formula if any, and vesting schedule.
Safe Harbor Addendum – required only if the company adopts a safe harbor plan design. This document will specify the type of safe harbor contribution for the plan.
Plan Evaluation Survey – includes information about company ownership, lineal relatives, highly compensated employees (HCEs), officers of the company, prior plans sponsored, and ownership of other companies.
Board Resolution – official document indicating the owners/officers of the company are authorizing the adoption of the plan.
401(k) Disclosure Statement – discloses certain information regarding compliance testing, fees, and choices that may be more suitable for the company instead of a 401(k) plan.
Census Information – a list of all active employees is required including their name, date of birth, date of hire, social security number, and annual compensation.
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