Your Nova Southeastern 401(k), in plain words

1. The match (guaranteed). The university matches every dollar you save, up to 4% of your pay. This is called the safe harbor matcha match the university commits to every year, so it is guaranteed, not optional. It is 100% yours right away.

2. Profit sharing (extra). Each year the university adds a contribution equal to 2% of pay for everyone eligible, and it may add more on top. This money follows the 3-year rule before it becomes yours.

The university may also add a separate discretionary match of up to 4%, but that one is decided year by year and is not guaranteed.

You join once you are not in an excluded group, meet the age and service rule, and reach your entry date. Your entry datethe day your participation actually starts is the first day of the month on or after you meet the rules.

A year of service means 1,000 hours worked in a 12-month period. These groups are not eligible under the plan: student employees, independent contractors, Puerto Rico employees, adjunct professors, and anyone with an agreement not to take part. Long-term part-time staff can join to save and get the guaranteed match after 3 years in a row with at least 500 hours each.

A few rules apply only to certain people. If one of these fits you, it can change when you get in, what counts, or when you can take money out.

You worked for the Museum of Art before Nova Southeastern. Your years of service with Museum of Art, Inc. count here in two ways: toward the age-and-service rule to get the match, and toward the 3 years you need for the match to become yours. This can move you in sooner and make the match yours sooner. (Plan sections: service counted for eligibility, and service counted for vesting.)

You are coded as a “1031” employee. Most people cannot take money out while working until age 59½. If your record is coded 1031, you can take an in-service withdrawal at age 55 – but only from your employer match account, your employer nonelective account, and any rollover account. Even then, you still cannot touch your own salary savings or the safe harbor match before age 59½. Ask the plan office whether you are coded 1031. (Plan section: in-service distributions, conditions for participants coded 1031.)

You are new, or under 21. The guaranteed safe harbor match is not for everyone yet. You only start getting it once you are at least 21 and have a year of service1,000 hours worked in a 12-month period. After that, the match starts on the first day of the month on or after you meet the rule. (Plan section: eligible participants for the safe harbor contribution.)

You served in the military. If you are a veteran reemployed under the federal USERRA law, your qualified military service may count as service with the university. Ask the plan office if this may apply to you. (Plan section: military service.)

You choose a percentage or dollar amount of your pay. The law sets a yearly cap. The amounts below are the caps the plan listed for 2022. They can rise in later years for cost of living, so check the current number first.

This is a retirement plan, so most withdrawals wait until you leave or retire. Here is when you can get money out:

• While still working: once you turn 59½. The smallest amount is $1,000, and you can take one such withdrawal per year, from accounts that are 100% yours.
• Hardship: for certain heavy needs, such as medical bills, buying your main home, tuition, avoiding eviction or foreclosure, funeral costs, or repairing disaster damage.
• Normal retirement: age 65.
• Early retirement: age 55 with 10 years of service.
• When you leave: you can take your vested balance. If it is $5,000 or less, the plan pays it out automatically. If it is between $1,000 and $5,000 and you do not choose, the plan moves it into an IRA for you.

A withdrawal while working is not extra money; it lowers what you will have at retirement.

You do not pay tax on your savings or the match until you take the money out. When you do, it counts as income that year.

• If you take money out before age 59½, you may owe an extra 10% tax on top.
• If you move the money straight into an IRA or another employer plan (a direct rollover), no tax is due yet.
• If you take the cash yourself instead, the plan must hold back 20% for federal tax. A direct rollover avoids that.

Tax rules here are complex. Talk to a tax professional before you choose.

Yes, you can take one loan at a time from your accounts.

You repay with interest at a fixed rate. If you are married for at least one year, your spouse must agree before you borrow against your balance. Miss payments and the loan can count as a taxable withdrawal.

Your vested balance goes to your beneficiary. If you are married for at least one year, your spouse is the beneficiary of the whole account. To name someone else, your spouse must sign a written, notarized waiver.

A divorce cancels a spouse beneficiary choice, so name a new one after a divorce. Report any change in your marriage status to the plan office.

You file a claim in writing with the plan administrator. If it is denied, you get a written notice, normally within 90 days, that explains why and how to appeal.

You have 60 days after a denial to ask for a review in writing. The plan must answer the review, normally within 60 days. If you are still turned down, you can take the matter to court.

This plan is not insured by the Pension Benefit Guaranty Corporation. That is normal for a 401(k); the value of your account rises and falls with your investments.