Your Nova Southeastern 401(k), in very simple words
What to do
- Save at least 4% of your pay. That is what gets you the full match. You can start once you are 21.
- Pick who gets your money if you die. Married for a year or more? Then it goes to your husband or wife. To pick someone else, they must sign a paper.
- Plan to stay 3 years. Your own savings are always yours. Some of your job's money is only yours after 3 years.
- Need help or want to change your savings? Call the plan office at 954-262-5272.
Do just one thing: save at least 4% of your pay. Then you get all the free money.
Where the free money comes from
Your job puts money in on top of yours. There are two kinds. See below.
The two kinds of job money
1. The match. It is a sure thing. You save, and your job adds the same amount. It matches up to 4 cents per dollar you earn. This money is yours right away.
2. Profit sharing. It is extra. Each year your job adds 2% of your pay for people who qualify. It may add more. This money is only yours after 3 years.
Some years your job may add a bit more match, up to 4%. But that part is a maybe. It is not a sure thing.
How the match works, from the plan paper. Your job adds money when you save. It matches what you save. The cap is 4 cents per dollar you earn. An example: you save $2,000 on $50,000 of pay. Your job adds $2,000. Some years your job may add a little more. That extra is a maybe, so it is not counted here.
When the money is yours to keep
Your own savings are always yours. The sure match is yours right away too. But some job money has a wait. You must work here 3 years to keep it.
The extra job money: you keep none before 3 years. You keep all of it at 3 years.
An example: your job put in $1,500 of the extra money. Leave at 2 years and you keep $0 of it. Stay 3 years and you keep all $1,500.
Leave before 3 years? You still keep all your own savings. You keep the sure match too. You give up only the extra.
Good to know: you pay no tax on this pay now. You pay the tax later, when you take the money out.
More, if you want it
Am I in the plan yet?
You can save your own pay once you turn 21. There is no wait for that.
To get the match and profit sharing, you need two things. You must be 21. You must have one year of work. One year of work means 1,000 hours in 12 months. So part-time years may not count.
Some people are not in the plan. These are: students who work here, contractors, workers in Puerto Rico, and adjunct professors. Anyone who signed a paper to opt out is also left out. Part-time staff can still save. They get the sure match after 3 years in a row. Each of those years needs at least 500 hours.
Special cases
A few rules apply only to some people. If one fits you, it can change your dates or your money.
You worked at the Museum of Art before this job. Your years there count here. They count to get the match. They also count toward the 3 years you need. So you may get in sooner, and keep the extra sooner.
Your record has the code “1031”. Most people must wait to take money out while still working. The age is 59½. With this code, you can take some out at age 55. But only from certain accounts. You still cannot touch your own savings early. Ask the plan office if you have this code.
You are new, or under 21. The sure match is not for you yet. You start to get it at age 21. You also need one year of work. Then it starts the next month.
You were in the military. Your time in service may count as work here. This is a federal rule (USERRA). Ask the plan office if it fits you.
How much can I save each year?
You pick a percent or a dollar amount of your pay. The law sets a top amount each year. The amounts below are for the year 2022. They can go up in later years. Check the new number first.
How do I get money out?
This is for your retirement. So most money waits until you leave or retire. Here is when you can take money out:
- While you still work here: once you turn 59½. The least you can take is $1,000. You can do this once a year. The money must be fully yours.
- For a hard need: such as big medical bills. Or buying your main home, or school costs. Or stopping the loss of your home, a funeral, or storm damage.
- Normal retirement: age 65.
- Early retirement: age 55, with 10 years of work.
- When you leave: you can take the money that is yours. Is it $5,000 or less? Then the plan sends it out on its own. Is it between $1,000 and $5,000? If you do not pick, the plan moves it to an IRA for you.
Taking money out while you work is not extra cash. It lowers what you will have when you retire.
Taxes, and moving the money
You do not pay tax on your savings or the match yet. You pay it when you take the money out. Then it counts as pay for that year.
- Take money out before age 59½? You may owe an extra 10% tax on top.
- Move it straight to an IRA or a new job's plan? Then no tax is due yet.
- Take the cash yourself instead? The plan must hold back 20% for tax. Moving it straight avoids that.
These tax rules are hard. Talk to a tax pro before you pick.
Can I borrow from my account?
Yes. You can have one loan at a time.
You pay it back with interest. Married a year or more? Your husband or wife must say yes first. Miss payments, and the loan can be taxed like money you took out.
If I die, who gets my money?
The money that is yours goes to the person you pick. Are you married for a year or more? Then it goes to your husband or wife. To pick someone else, they must sign a paper and have it notarized.
A divorce cancels that pick. So pick again after a divorce. Tell the plan office if your marriage status changes.
If they say no to a claim
You ask for your money in writing. If they say no, they must send you a letter. It comes within 90 days. It tells you why, and how to ask again.
You have 60 days to ask them to look again, in writing. They answer within 60 days. Still a no? You can take it to court.
Plan facts
This plan is not backed by the PBGC (a federal insurer). That is normal for a 401(k). Your account can go up or down with your investments.