The NSU Puerto Rico 401(k) Plan is an employer-sponsored, defined-contribution, personal savings account for NSU employees who reside in Puerto Rico, as defined in subsection 401(k) of the U.S. Internal Revenue Code and Puerto Rico law.
If you are an eligible Puerto Rico employee who is 21 years of age or older, you can contribute to the NSU Puerto Rico 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 NSU Puerto Rico 401(k) Plan 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 NSU employer match at the same time.
Once you are eligible, NSU will match your employee contributions up to the first 4%. If you contribute at least 4%, NSU will match 10% of your eligible compensation. Contributions to the NSU Puerto Rico 401(k) Plan are not limited to the percentage of your salary that NSU matches. You can contribute up to 70% of any percentage of your gross bi-weekly earnings up to the limits set by the IRS each year.
|YOUR CONTRIBUTION||NSU SAFE HARBOR MATCH||NSU BASIC MATCH||NSU ADDITIONAL MATCH||TOTAL NSU MATCH||TOTAL RETIREMENT SAVINGS|
|VESTED IMMEDIATELY||VESTED AFTER 3 CALENDAR YEARS AND 1,000 HOURS OF SERVICE PER YEAR|
Contributions to the NSU Puerto Rico 401(k) Retirement Savings Plan are not limited to the percentage of your salary that NSU matches. You can contribute up to 70% of your gross bi-weekly earnings up to the limits established under Puerto Rico laws.
|NSU PUERTO RICO 401(K) PLAN||2022 AND 2023 CONTRIBUTION LIMITS|
|Employee Limit (under age 50)||$15,000|
|Employee Limit (age 50 and up)||$16,500|
|NSU Employer Contribution Limit||$30,500|
Employees have the option to take out a loan or withdraw funds from their NSU Puerto Rico 401(k) retirement plan. There are taxes and penalties that apply to hardship withdrawals (but not to loans), so you should consider such an option as a last resort for accessing funds. Your options are:
Allows employees to access employee contributions (but not NSU 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:
59 ½ IN-SERVICE WITHDRAWALS
Allows active employees to access employee contributions (but not NSU 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:
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.
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).
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 firstname.lastname@example.org