Retirement Savings Through Fidelity
Young Life Matches Your Contribution Up to 4%
The Young Life 401(k) plan allows staff to set aside a certain percentage of pre-tax and after-tax compensation to invest for retirement, up to the IRS limits. Young Life matches 100 percent of every dollar you contribute to your 401(k) plan up to 4%. That’s like getting free money for retirement.
Young Life's 7% Retirement Contribution
For new hires, after 36 cumulative months of service, Young Life will begin making a 7% retirement contribution directly into each eligible staff person’s 401(k) account. This contribution replaces the former Pension Plan 401(a).
For rehires who previously worked for Young Life before January 1, 2020, Young Life will immediately begin making a 7% retirement contribution directly into each eligible staff person’s 401(k) account upon rehire.
All retirement contributions are fully vested upon deposit.
Example of How this Works
It is recommended that you set aside 15% of your salary for retirement. Young Life will match up to 4% of your salary that you invest in the 401(k). So, if you contribute 4% of your salary into your 401(k) you will then have a total of 8% savings for retirement in your 401(k). Additionally, once eligible, Young Life will contribute another 7% “Retirement Contribution” directly into your 401(k) account. For a grand total of 15% retirement savings.
- You invest: 4%
- Young Life Matches up to: 4%
- Once eligible for retirement contributions, Young Life Provides: 7%
- Total retirement savings in this example: 15%
So, if your monthly pay is $1,000, your 4% contribution is $40 and Young Life’s contribution is $40* for a total of $80. Once eligible for retirement contributions, Young Life will provide another 7% or $70 in this example, giving you a total of $140/month toward retirement.
The 401(k) enables you to accumulate money for retirement by waiting to pay taxes on that money until you withdraw it. Since taxes are based on your level of income and your average retirement income is less than your current salary, the level of tax you are subject to during your retirement years is less than you would pay now.
New Hires Are Enrolled at 1% 401(k) Contribution
Newly hired employees are automatically set up at one percent of salary during the first 30-60 days of employment and will be contacted directly by Fidelity regarding the enrollment and the choice to opt out of the plan or increase your contribution.
Need to contact an investment adviser at Fidelity?
401(k) Topics and Resources
Distribution or Rollover of Your 401(k) Retirement Funds
Whenever you leave Young Life staff, you are entitled to withdraw the full value of your 401(k) account. This amount is determined at the time you leave staff by the fund custodian.
You have the right to take a lump-sum payment or receive a monthly dispersal of the funds, subject to IRS limitations. You may also defer receipt of all or any of the funds until a future date determined by the IRS code.
Note: A 10 percent excise tax may be assessed on pre-age 59 1/2 withdrawals, unless you roll over your account to an IRA or other qualifying tax-sheltered account within 60 days of the date you receive the money. Special rules apply to funds transferred from the prior pension plan 401(a).
Contact the Benefits department for more information.
Links to More Information:
- 401(k) Rollover Form available from Fidelity’s Web site
- Benefits Manual (Retirement Section)
Loans Against My 401(k)
You may borrow up to 50 percent of your vested 401(k) account balance. This does not include funds transferred from the prior pension plan 401(a). Contact the Benefits department for more information.
Up to 50 percent of the money vested in your 401(k) plan is available for you to borrow. Details and further information is available in the 401(k) Summary Plan Description. An overview of the rules and conditions are as follows:
- Your beneficiaries and alternate payees may not borrow from your account.
- The total amount of outstanding loans is limited to 50 percent of your account balance.
- The total amount you may borrow is limited to $50,000 minus the highest outstanding balance of any other plan loans from this plan and any other Young Life plan in the 12 months immediately before the date of your new loan.
- Young Life will establish a reasonable rate of interest by contacting a bank of its choice to ascertain the appropriate rate.
- All loans must be repaid within 60 months; however, if you use the loan to purchase your principal residence, the maximum term is extended to 120 months.
- The loan term may not be extended beyond the date you are required to begin taking distributions.
- All loans must be repaid in substantially equal payments through payroll deduction from each paycheck.
- If you are not receiving a paycheck (unpaid leave of absence, etc.), you must make arrangements to make your loan payments on a timely basis.
- You may prepay a loan in full with a certified or cashier’s check after it has been outstanding for at least one month.
- When you terminate employment with Young Life, your outstanding loan will become due and payable in full unless you contact Fidelity and request a re-amortization of your loan on a personal pay basis. You can pay the outstanding balance in full with a certified cashier’s check. If the loan is not repaid in full or re-amortized by the last day of the calendar quarter in which your employment terminated, the entire outstanding balance will be treated as a taxable distribution to you.
- If you die with an outstanding loan, the entire balance is due and payable. Your personal representative can pay the outstanding balance in full with a certified cashier’s check. If the loan is not repaid in full by the last day of the calendar quarter following your death, the entire outstanding balance will be treated as a taxable distribution.
- All loans will be in default if any payment is not made on its due date. You have a grace period that lasts until the last day of the calendar quarter, following the calendar quarter in which the default occurred, to make the defaulted payment. If you do not cure a default within the grace period, you will be considered to have received a taxable distribution from the plan equal to the entire outstanding balance of your loan on the last day of the grace period. Your account(s) in the plan may be applied as payment of your loan as soon as it is distributable under the terms of the plan.
Generally, a loan that meets all of the above-described conditions will not be considered to be a taxable distribution from the plan. However, if a loan exceeds the above-described dollar or percentage limits or if a loan is not repaid with timely repayments within 60 months, some or all of such a loan will be treated as taxable income to you.
For additional information, please contact a Young Life representative at benplan@sc.younglife.org or 719-381-1950.