401(k) - 2019 ENROLLMENT Plan for your Future
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401(k) Plan for your Future Focus Staff 2019 ENROLLMENT
Focus Staff Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. 2
How do you envision your retirement?
Traveling to A life of Spending time with
dream destinations? leisure? family and friends?
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How much will you need?
You will need more Your income Inflation will
than you think! may be fixed affect purchasing
power
4
Where will your income come from?
Social Regular Other Your
Security? Savings? Investments? 401(k) Plan!
5
What is a 401(k) plan?
The term 401(k) refers to a section The federal government and most
of the Internal Revenue Code that state governments have enacted
permits deferring taxes on policies to permit federal income tax
retirement savings deducted deferrals to encourage appropriate
directly from payroll.
savings for retirement.
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2 Alternate Contribution Methods
“Pre-tax” ROTH
Deferrals
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The Pre-tax
ADVANTAGE
• By saving with tax-deferred dollars, it means you don’t
pay federal or state income taxes on the money you
save until you withdraw it, generally at retirement.*
The interest on the money you put away is tax
deferred, so your nest egg grows faster.
Withdrawals must begin no later than April 1 of the
calendar year following the later of:
The calendar year in which the participant attains age
70½*, or
The calendar year in which the participant retires.
* No pre-tax deferral in PA. In PA deferrals are taxed as they go into the plan, and generally
when distributed, they would be tax free unless they are withdrawn early.
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Pre-tax take home
ADVANTAGE
Pre-tax
Without 401(k)
deferrals
ANNUALIZED GROSS PAY $35,000 $35,000
401(k) 0.00 -1,750
Taxable Pay 35,000 33,250
Federal Income Tax -4,789 -4,526
FICA (7.65%) -2,678 -2,678
Conventional Saving Account -1,750 0.00
NET TAKE-HOME PAY $25,783 $26,046
ANNUALIZED SAVINGS: $263
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“ROTH” non-deductible
• An alternative method is to contribute into your
401(k) with taxed payroll-deducted dollars.
While you do not currently save federal or state
income taxes, there are benefits at retirement:
Tax-free income at retirement*
No requirement to begin withdrawals
at age 70-1/2
Tax-free income for beneficiaries
* Must meet the following criteria:
• Contributions are invested a minimum of a 5 taxable year period, and
• The participant is either age 59 ½ , deceased or disabled
10Save for your Retirement!
Potential for $1 Million By Age 65, Starting at age 30
Start as early as you can because
you may be able to save more
money with less money invested!
These calculations are provided for illustrative purposes only, and should only be used as a guideline. They are not representative of past
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or future performance and not a replacement for professional financial planning advice. Actual investment results will vary.Save for your Retirement!
Potential for $1 Million By Age 65, Starting at age 40
Start as early as you can because
you may be able to save more
money with less money invested!
These calculations are provided for illustrative purposes only, and should only be used as a guideline. They are not representative of past
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or future performance and not a replacement for professional financial planning advice. Actual investment results will vary.Save for your Retirement!
Potential for $1 Million By Age 65, Starting at age 50
Start as early as you can because
you may be able to save more
money with less money invested!
These calculations are provided for illustrative purposes only, and should only be used as a guideline. They are not representative of past
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or future performance and not a replacement for professional financial planning advice. Actual investment results will vary.You are in control!
It’s simple.
You decide how much money to invest.
It’s deducted You decide how you would
directly from like your money divided
your paycheck. among the investments
offered.
14Who’s eligible?
Individuals who work for Focus Staff for 3
consecutive months
Age Service Hours of Employment
Employees can enroll quarterly once they reach their initial entry date.
15How much can I contribute?
• Increments of whole percentages:
• 1% - 92%
• For 2019:
• up to $19,000 maximum
• age 50 or over, up to another
$6,000 catch-up contribution
16Whose money is it?
• Your contributions are
always 100% yours!
• The employer match has a 4
year graded vesting period
17How can I access and control MY MONEY?
• Loans are available.
• Participants may begin withdrawing at
age 59½.
• Withdrawals must begin no later
than April 1 of the calendar year
following the later of:
• the calendar year in which the participant
attains age 70½*, or
• the calendar year in which the participant
retires.
• Rollovers are available
* For business owners (>5%), withdrawals may not be delayed until
the calendar year of retirement.
18Start Early, Keep Assets, and Educate Yourself!
Start Keep your retirement Educate
Now assets for retirement. yourself!
19Getting In…Enroll Today
With Quick Enroll Online Portal or Mobile App!
Open Enrollment Beginning January 2019
Create and access your account
online at www.paychexflex.com
or
Complete the simple
Call Paychex Retirement Services
enrollment process on your at 877-244-1771.
PC or mobile device
Remember to return the Beneficiary Form to employer as soon as possible.
20Quick Enrollment
Online Portal or Mobile App
Follow the direct link from the Paychex Flex dashboard to the new enrollment experience!
21Quick Enrollment
Online Portal or Mobile App
Making changes to your contribution level and investments is simple!
Determine your desired
Enter contribution
monthly income at retirement
percentages and retirement
by using the calculations on
age and click “Calculate” 22
this page.Quick Enrollment
Online Portal or Mobile App
Simplified investment strategies based on individual comfort level
Use the default investment
Do it yourself to
select your own investmentsQuick Enrollment
Online Portal or Mobile App
For this example, let’s go with the default investment, review, and
then hit “Submit.” Congratulations, you’re done!
It’s that simple!Manage Your 401(k) Account
By Laptop/PC, or any of your mobile devices 24x7
Access online at: https://www.paychexflex.com By Phone: 877-244-1771
Remember: You’re in Control!
25Thank you!
© 2018 Paychex, Inc. All rights reserved.
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