Grande Oaks 401(k) Plan
The Grande Oaks 401(k) Plan provides you with the opportunity to save for retirement. As a participant in the plan, you may elect to contribute a portion of your compensation to the plan and receive employer contributions as well.
Eligibility
If you are an eligible Grande Oaks employee who is 21 years of age or older, you can contribute to the Grande Oaks 401(k) Plan on the first day of the month coinciding with or next following your one-year anniversary. If you have not worked 1,000 hours as of your anniversary date, you will become eligible for the Grande Oaks match at the beginning of the year following the calendar year in which you complete 1,000 hours of service. You also will become eligible for the Grande Oaks match at the same time.
Eligibility for Re-hired Employees:
If you were re-hired and were part of the Grande Oaks 401K Retirement Plan before, you can begin making contributions starting the month after your re-hire date. Re-enrolling in the retirement through TIAA is required.
Matching and Vesting
Once you are eligible, Grande Oaks will make a safe harbor matching contribution equal to 100% of your salary deferrals that do not exceed 3% of your compensation, plus 50% of your salary deferrals between 3% and 5% of your compensation.
| EMPLOYEE CONTRIBUTION | GRANDE OAKS SAFE HARBOR MATCH | TOTAL RETIREMENT SAVINGS |
|---|---|---|
| 0% | 0% | 0% |
| 1% | 1% | 2% |
| 2% | 2% | 4% |
| 3% | 3% | 6% |
| 4% | 3.5% | 7.5% |
| 5% | 4% | 9% |
| 6-70% | 4% | 10-74% |
Grande Oaks follows a "vesting schedule" per IRS-based rules. This means that you will not be entitled ("vested") in all the employer contributions until you have been employed with Grande Oaks for a specified period of time. All employee contributions are immediately vested up to the IRS contribution limits below.
| Vesting Schedule for Matching Contributions | |
|---|---|
| Years of Service | Percentage |
| (At least 1,000 hours of service in a calendar year) | |
| 1 | 20% |
| 2 | 40% |
| 3 | 60% |
| 4 | 80% |
| 5 | 100% |
Employee Contributions
Contributions to the Grande Oaks 401(k) Plan are not limited to the percentage of your salary that Grande Oaks matches. You can contribute up to 70% of your gross bi-weekly earnings up to the limits set by the IRS each year.
You are able to make both pre-tax employee contributions as well as Roth after-tax contributions. You can access the TIAA online salary deferral feature by logging into your TIAA.org/nsu account to update your contribution information.
|
Pre-tax Account |
Roth after-tax account |
|
Take advantage of pretax and tax-deferred benefits when you put the money in. |
Take advantage of tax-free benefits when you take the money out, if certain conditions are met. |
How a Roth after-tax account works:
- You make contributions to a Roth account after paying current income taxes on the money you contribute. You can withdraw the balance and any earnings tax-free if certain conditions are met. To do so, however, you must generally be 59½ or older and leave the money in your designated Roth account for at least five years.
- No income restrictions. The new Roth option doesn't have income restrictions, so if your income is too high to qualify for a Roth IRA, you can still make contributions to the retirement plan Roth option.
- Higher contribution limits. Roth retirement plan contributions are capped at the same higher contribution limits as 401(k) plans, higher than Roth IRAs. Your combined (Roth and pretax) contribution limit for 2022 is $20,500 if you’re under the age of 50 and $27,000 if you’re 50 or older.
- Employer matching contributions. Employer matching contributions must be made on a pretax basis. Therefore, you will owe income tax on the employer matching contributions and any earnings upon withdrawal.
- Required distributions. As with pretax contributions, you will need to take Roth account required minimum distributions, typically beginning at age 72. The Roth IRA, on the other hand, is not subject to required minimum distributions. And you can roll over your Roth retirement plan option contributions to a Roth IRA. You should seek advice based on your own particular circumstances from an independent tax advisor.
Is a Roth account right for you?
|
If you expect your tax rate during retirement to be: |
You may want to consider: |
|
Higher than your current rate |
Roth option. Withdrawals of all contributions and earnings will be tax-free at retirement if certain conditions are met. |
|
Lower than your current rate |
Pretax option. While this money is taxable at retirement, you may be in a lower tax bracket when you’re no longer working. |
|
Same as your current rate |
Roth and pretax options. Having both can provide a hedge against the uncertainty of future tax rates. |
Contribution Limits
Annual limits are generally set by the IRS each year in October for the next calendar year and are listed below for the calendar year 2023, effective January 1st 2023 to December 31st 2023 and 2024, effective January 1st 2024 to December 31st 2024
| GRANDE OAKS 401(K) PLAN | CALENDAR YEAR 2023 CONTRIBUTION LIMIT |
|---|---|
| Employee Limit (under age 50) | $22,500 |
| Employee Limit (age 50 and up) | $30,000 |
| NSU Employer Contribution Limit | $26,400 |
| GRANDE OAKS 401(K) PLAN | CALENDAR YEAR 2024 CONTRIBUTION LIMIT |
|---|---|
| Employee Limit (under age 50) | $23,000 |
| Employee Limit (age 50 and up) | $30,500 |
| NSU Employer Contribution Limit | $27,600 |
Loans and Withdrawals
Loans are NOT available for the Grande Oaks 401(k) plan, but employees have the option to withdraw funds from their retirement plan. There are taxes and penalties that apply to hardship withdrawals, so you should consider such an option as a last resort for accessing funds. Your options are:
HARDSHIP WITHDRAWALS
Allows employees to access employee contributions (but not Grande Oaks matching contributions) from their retirement plan accounts. Please note: Hardship distributions are taxable and subject to a 10% early-withdrawal penalty. A hardship distribution may only be made for payment of the following:
- Expenses for medical care (described in Section 213(d) of the Internal Revenue Code) previously incurred by you, your spouse, your dependents or your beneficiaries or necessary for you, your spouse, your dependents or your beneficiaries to obtain medical care.
- Costs directly related to the purchase of your principal residence (excluding mortgage payments).
- Tuition, related educational fees, and Food and Housing expenses for the next twelve (12) months of post-secondary education for yourself, your spouse, your dependents or your beneficiaries.
- Amounts necessary to prevent your eviction from your principal residence or foreclosure on the mortgage of your principal residence.
- Payments for burial or funeral expenses for your deceased parent, spouse, children, other dependents or beneficiaries.
- Expenses for the repair of damage to your principal residence due to a catastrophe such as a hurricane
59 ½ IN-SERVICE WITHDRAWALS
Allows active employees to access employee contributions (but not Grande Oaks matching contributions) from their retirement accounts if they are at least age 59-1/2 years or older. Please note: the 10% early withdrawal penalty does not apply, but a 20% federal income tax will be withheld. If your tax bracket is higher than 20%, additional federal income tax may be imposed.
Consult your Financial Advisor We encourage you to consult your financial or tax advisor if you have specific questions related to your circumstances. For individual counseling, you can contact financial advisors at the numbers listed below:
- TIAA: 800-732-8353
- CAPTRUST: 800-967-9948
Distributions
If you terminate employment for any reason other than death, disability or normal retirement, you will be entitled to receive the “vested” portion of your account balance.
- If your vested account balance exceeds $5,000, you must consent to any distribution before it can be made.
- If your vested account balance does not exceed $5,000, then a distribution of your account balance may be made to you. A 30-day notice will be sent to you, providing you with distributions options. If an election is not made within the 30-day window, your funds will be paid out in a lump sum payment.
Distribution Options
- Single Lump-sum Payment – taxable in tax year in which you take the distribution, unless it is rolled over to a qualified plan
- Partial Distribution – of at least $1,000
- Installments – over a period of not more than your assumed life expectancy
- Leave Money as is – you may leave your account untouched until you’re age 72 at which time you will be required to take Minimum Required Distributions (RMDs) annually
- Annuity – Single Life or Joint & Survivor
Required Minimum Distributions (RMDs)
Once you separate employment, RMDs are mandatory, minimum, yearly withdrawals that generally must be taken starting in the year you turn age 72. For more information, contact TIAA at 800-842-2252.
Note: Distributions are eligible to be rolled over to another qualified plan or Individual Retirement Account (IRA).
Resources
Grande Oaks 401(k) Summary Plan Description
Disclaimer
In the event of any conflict or inconsistency between the information described and contained on this website and the official Plan Document, the terms and conditions of the Plan Document shall control. NSU is not responsible for any investment advice provided to participants by Captrust and/or TIAA.
For any additional questions, please contact the benefits department at ohr-retirement@nova.edu