FAQs

What is a 401(k) Plan?

Code section 401(k) is the section of the Internal Revenue Code that permits the establishment of a Cash or Deferred Arrangement within a Profit Sharing Plan. Section 401(k) permits salaries to be voluntarily reduced and investment opportunities to be created with potential tax advantages to both employers and employees.

How does the Plan work?

The Plan is an arrangement that permits employees, on an elective basis, to authorize a portion of their compensation to be withheld and invested for repayment at a later date on a tax-deferred basis. The Plan also allows employers to provide a match or discretionary (profit sharing) contribution. These contributions are expensed just like payroll and can be used to reduce corporate tax liability, while providing a benefit to employees.

How long does it take for a fund-to-fund transfer to go through?

Typically, on the same or next day.

Am I able to increase or decrease my contribution to the plan?

You can change your contribution amount; however, there are specified times in which these changes can be made. Refer to the Summary Plan Description or see your Sponsor.

If I no longer want to participate in my plan, what are my options?

You can stop making contributions at any time.

Under what circumstances may I take my money out?

Distributions are allowed under the following conditions: termination of employment, disability, attainment of normal retirement age, death and plan termination.

How can I tell if my plan allows loans?

If your Plan has a loan provision, you may access information and loan application procedures under the forms section on-line.

How long will it take to process my loan?

Five to seven business days after the request has been received in “good order.”

I have recently been terminated. How do I take my money out of the plan? What do I need to do?

You may access information and distribution procedures under the forms section online. Your distribution will be processed within seven to 10 business days after the request has been received in “good order.” Special circumstances may apply; see your Plan’s Sponsor for additional information.