Ave Maria in conjunction with your employer offer eligible employees the opportunity to participate in either a 401(k) or 403(b) retirement plan to provide employees the potential for financial security in retirement.
To be eligible to participate in one of these plans, you must be classified as a regular full-time or part-time employee and be 21 years of age or older. Employees on the first day of employment may choose to begin Elective Deferral Contributions and after completion of six months of employment, are eligible to receive Employer Matching Contributions (if applicable; check with your HR representative to confirm whether your employer is currently matching employee contributions). If the employer does match, the match would occur the first pay period following that event or as soon as is administratively feasible. The six-month waiting period can be waived in the event an employee has worked for an educational institution for at least six months and can document as proof the name of the institution and length of service. In addition, there is a provision for catch up contributions for individuals who turn 50 years of age by the end of a Plan year.
Once an employee decides to participate, the enrollment is conducted on-line and it is the employee's responsibility to ensure this activity occurs. Contributions cannot be submitted until the enrollment process is complete. An employee must also submit to Human Resources an executed Salary Reduction Agreement to initiate the salary reduction process. At that time, it is also required Human Resources receive a copy of the beneficiary designation; Human Resources must have this information in the HR file.
With submission of a revised Salary Reduction Agreement form to your designated Human Resources representative, a participant may increase or decrease the Elective Salary Deferral once per month as provided in the Plan, or cease contributions. The effective date of this election will become effective with the following pay period or as soon as is administratively feasible. You may terminate your election at any time. All of your contributions to the Plan are fully vested at all times.
As provided in the Plan, you may not take a distribution from your account until you separate from service, attain age 59½, attain normal retirement age, are disabled, die; or, in the case of hardship, you must meet the criteria of both and have an immediate financial need.
The Plan does make provisions for employee loans; however, the employee must contact the appropriate vendor; i.e. Brown & Brown of Detroit formerly ALCOS or TIAA-CREF.
Because employee contributions to the 401(k) and 403(b) plans are automatically deducted from your pay before federal and state tax withholdings are calculated, you save tax dollars now by having your current taxable amount reduced. While the amounts deducted generally will be taxed when they are finally distributed; favorable tax rules typically apply to 401(k) and 403(b) distributions.
Complete details of the 401(k) and 403(b) savings plans are described in the Plan Documents specific to each Plan and can be accessed through the links below. In the event you have questions regarding your eligibility, the enrollment process, etc., please contact your designated Human Resources representative for more information. Please note that Human Resources representatives cannot advise employees on investment options as they are not licensed to do so. Questions regarding developing a portfolio, fund activities, and viability must be addressed to the appropriate retirement plan vendor.
Ave Maria 401(k) or Ave Maria 403(b) Plans
Bill Smith, Brown & Brown of Detroit
Ave Maria 403(b) Plan
TIAA-CREF Customer Service
Ave Maria 401(k) Plan (Brown & Brown of Detroit/Nationwide)
Ave Maria 403(b) Plan (Brown & Brown of Detroit/Nationwide and/or TIAA-CREF)
Ave Maria School of Law 403(b) Retirement Plan (Brown & Brown of DetroitNationwide and/or TIAA-CREF)
The IRS has announced new maximum contribution limits for 2013:
- Beginning in January, you can contribute as much as $17,500/year to your retirement plan account.
- If you are 50 or older, you could contribute as much as $23,000 with the age 50+ catch-up contribution.