401(k) Plan for Active Lay Employees
Administered by TIAA
All employees are eligible to contribute to a self-directed, tax advantage investment account. Employees working 30 or more hours weekly are also eligible for employer matching contributions and annual discretionery base contributions. Matching is available at 50% of the employee contribution up to a max of 4%, (match would be 2%). An annual discretionary 2% will also be contributed from the Employer to the employee's account if the employee is employed & eligible on Dec. 31st of each year; retirements & disability will not decrease this base annual contribution.
Employees working less than 30 hours a week may make voluntary contributions without the match or base; let them know annual fees are a minimum $48.00.
401k accounts are qualified retirement accounts subject to early withdrawal taxes penalties before age 59&1/2.
If you are a new or existing employee and would like to deduct monthly 401k voluntary contributions from your pay, you should complete the Salary Reduction Agreement, (form link below) and give the completed form to the payroll administrator at your location. You will receive a welcome packet from TIAA-CREF after your first contribution.
Federal law imposes a limit on the amount individuals may contribute to their 401(k) accounts on a yearly basis.
2015 & 2016:
$18,000 - the annual maximum for individuals younger than age 50.
$24,000 - the annual maximum for individuals age 50 and older.
This limit is subject to increase or decrease each year. If your location uses a payroll service, it is likely that the payroll service will automatically stop withholding contributions from an employee's pay check once that employee has reached the annual maximum, but check to be sure.
100% VESTED IMMEDIATELY for employer contributions, if they are working at least 30 or more hours weekly without a break. Employees are also immediately vested for voluntary contributions.
Forms & Brochures:
401k Salary Reduction Agreement
401k Outline Brochure
Investing for Catholics investment Brochure
Investing for Catholics Target Funds Brochure
401k Introduction Guide - This guide will be mailed to each new employee with the TIAA-CREF welcome packet.
401k Summary Plan Description 2016 - Lay 401k Plan information for new & existing employees
TIAA Customer Service: 800-842-2252 Lay Plan #406426
Investing for Catholics
Relationship Consultant - Mark Arnold CRPC