401K



401(k)The 401(k) plan is a long-term savings plan that is funded by employee contributions and matching contributions from ACCC. Contributions are made from the employee’s salary before taxes and the funds grow tax-free until they are withdrawn, at which point they can be converted into an IRA. Funds can be transferred if an employee changes employer and the employee can manage the investments by his-/herself.The purpose of this task list is to provide guidance to Finance personnel about how to administer the 401(k) plan. These tasks are completed on the monthly and as needed basis. It is the responsibility of the Finance Manager and Human Resources Manager, or designee, to administer the 401(k) plan.On the monthly basis the Human Resources Manager and/or the Finance Manager will run a report of the employees that will become eligible for the 401(k) plan at the next monthly open enrollment period.The Human Resources Manager will contact employees that are newly eligible for the 401(k) plan to let them know that they are eligible to enroll in the 401(k) plan. Include in the email information about how to enroll and what is required to enroll.The Finance Manager will email employees that are eligible for the 401(k) plan, but that are not enrolled on the quarterly basis to remind them that they are still eligible to enroll in the plan. Include in the email information about how to enroll and what is required to enroll.When the Human Resources Manager and the Finance Manager receive emails from Vanguard/Ascensus the emails should be reviewed to determine action needed, if any.For emails containing additions and changes that participants have made to their deferral to the plan, update the ADP Portal with that information.For emails containing notification of loans awaiting approval, log into Vanguard/Ascensus Employer Portal and approve or deny loan request. If loan is approved, make note of the date the loan is to start being repaid, the weekly loan payment and the total due (loan plus interest). On Friday prior to the start of the loan repayment, update the ADP Portal with that information so that payments will begin on timeFor emails containing notification of distributions, log into the Vanguard/Ascensus Employer Portal and approve or deny loan request. If distribution is a hardship distribution for a current employee, once the distribution is approved, update the ADP Portal by removing the employee’s 401(k) deferral as employees that take hardship distributions must stop deferring to the 401(k) plan for a period of six months.Arrange to have a representative from Monument Financial Retirement Services come to ACCC when necessary to speak to employees about the 401(k) plan, the funds and to answer any questions that employees may have about the plan and the funds.Pass along any appropriate information about the 401(k) plan and funds to all employees at ACCC. ................
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