FREQUENTLY ASKED QUESTIONS
You are the only person to contribute to the 401(k) Plan. Employers do not contribute to this Plan. This Plan provides you an opportunity to save for retirement on a tax-advantaged basis.
You will be eligible to participate in the Plan if you are employed in Covered Employment in the Jurisdiction of Local 110, IBEW and you have elected to make contributions to this Plan.
You may elect to defer portions of your compensation to the 401(k) Plan instead of receiving that amount in cash.
There are two types of Elective Deferrals:
- • Pre-Tax Deferrals – If you elect to make Pre-tax deferrals, then your taxable income is reduced by the deferral contributions, so you pay less in federal income taxes. Later when the Plan distributes the deferrals and earnings you will pay the taxes on those deferrals and the earnings.
- • Roth Deferrals – If you elect to make Roth deferrals, the deferrals are subject to federal income taxes in the year of the deferral. It is your employer’s responsibility to withhold and pay the appropriate income taxes on the Roth deferrals.
You are vested immediately on both the contributions and earnings.
Minimum contribution is $0.25 per hour and any additional amounts that you defer must be in $0.25 per hour increments. You are able to defer the lesser of 100% of your compensation or the annual maximum amount permitted by law. The maximum deferral amount for year 2021 is $19,500. If you are age 50 or older (or are turning 50 during the year) you may make additional Elective Deferrals above and beyond the elective deferral amount established in the Plan or the law. These are called “Catch Up Contributions.” The maximum for year 2021 is $6,500. So you could possibly defer a total of $26,000 in year 2021 if you meet the eligibility requirements.
You will need to complete a Salary Deferral Enrollment and Change Agreement. Once the form is completed it will need to be forwarded to the Fund Office for processing. The Fund Office will then forward it onto your employer. Please note that you must have a deferral form for each employer.
You will need to complete a Salary Deferral Enrollment and Change Agreement. Once the form is completed it will need to be forwarded to the Fund Office for processing. The Fund Office will then forward it onto your employer. Please note that you must have a deferral form for each employer.
Your employer will forward the contributions to the Fund Office for processing. The Fund Office will then record the contributions. Once a month the contributions are then sent to the record keeper for the Plan. Milliman is the Fund record keeper for this Plan.
Milliman will create an account for you once they receive the first contribution on your behalf. Once your account has been established, you can then elect your investment funds that are offered within the Plan. To select/change your investment allocation, you will need to contact Milliman by phone at (866) 767-1212 or on the Milliman site.
You can do this one of two ways:
- • You can contact Milliman, either by phone at (866) 767-1212 or on the Milliman site.
- • You can contact the Fund Office.
You are eligible for payment of your Accounts upon:
- • You reach early retirement age 55 and retire from employment with a contributing employer;
- • You reach normal retirement age 65 and retire from employment with a contributing employer;
- • You become totally and permanently disabled as evidenced by a written certification from a physician acceptable to the Trustees.
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• You terminate your employment have meet one of the following requirements:
- o You have no contributions from any employers contributing to the Plan during at least one Plan Year and your account balance is no more than $15,000; or
- o You have no contributions from any employers contributing to the Plan during at least one Plan Year and you have ceased all employment and business occupation with a Related Organization and have an account balance of more than $15,000.
- • Upon your death, your beneficiary will be entitled to 100% of your account balance.
To apply for a withdrawal, you will need to contact the Fund Office for the appropriate paperwork.
There are no loans available with this Plan. In certain circumstances you can request a hardship distribution from your account. To be eligible for a hardship distribution, you must experience a financial hardship which is defined as an immediate and heavy financial need to pay for one of the following:
- • The purchase of a principal residence for the participant;
- • The payment of tuition and related educational fees for the next 12 months of post-secondary education for the participant or dependents;
- • Expenses for medical costs for the participant or dependents, or;
- • Payments necessary to prevent eviction from or foreclosure of the participant’s principle residence.
- • Payments for burial or funeral expenses for the participant’s deceased parent, spouse, children, dependents or primary beneficiary of participant.
- • Expenses for the repair of damage to the participant’s principal residence that would qualify for the casualty deduction under code section 165.
The payment you receive from your Pre-Tax Deferrals will be subject to mandatory withholding of 20% for federal income taxes. You can avoid mandatory withholding only if you arrange to have your benefit transferred directly to an IRA or an eligible retirement plan.
The payment you receive from your Roth Deferrals will be tax free assuming it is a qualified distribution. If it is not a qualified distribution the contributions paid in will be tax free but the earnings will be taxed. What is a qualified distribution:
The payment you receive from your Roth Deferrals will be tax free assuming it is a qualified distribution. If it is not a qualified distribution the contributions paid in will be tax free but the earnings will be taxed. What is a qualified distribution:
- • You have your Roth after-tax account open for at least 5 years, and
- • You take your distribution after age 59 ½ or due to death or disability
In order to change your mailing address, you must complete a Change of Address Form. You may print and complete the form, or you may contact the Fund Office and a form will be mailed to you.
Complete a Beneficiary Designation Form and mail to the Fund Office.
Your account balance will be paid out to your designated beneficiary.
If you divorce, your spouse may be entitled to receive a portion or all of your 401(k) Plan in accordance with the terms of a Qualified Domestic Relations Order (QDRO). If you divorce, you must contact the Fund Office to ensure your benefits are paid properly.
If you have any questions about your eligibility, benefits or claims, contact the Fund Office at (952) 851-5949 or (800) 535-6373.
LIFE EVENTS
Birth or Adoption
You may designate anyone as a beneficiary for death benefits payable for the loss of your life by submitting a Beneficiary Designation Form to the Fund Office.
Marriage
You may designate anyone as a beneficiary for death benefits payable for the loss of your life by submitting a Beneficiary Designation Form to the Fund Office.
Disability
You are eligible for payment of your Accounts upon:
- • You reach early retirement age 55 and retire from employment with a contributing employer;
- • You reach normal retirement age 65 and retire from employment with a contributing employer;
- • You become totally and permanently disabled as evidenced by a written certification from a physician acceptable to the Trustees.
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• You terminate your employment have meet one of the following requirements:
- o You have no contributions from any employers contributing to the Plan during at least one Plan Year and your account balance is no more than $15,000; or
- o You have no contributions from any employers contributing to the Plan during at least one Plan Year and you have ceased all employment and business occupation with a Related Organization and have an account balance of more than $15,000.
- • Upon your death, your beneficiary will be entitled to 100% of your account balance.
Moving
If you have recently moved, please complete a Change of Address Form.
Divorce
In the event of divorce, your former spouse may have a right to receive some portion of your account directly from the Plan. Please contact the Fund Office for more information.
Retirement
You are eligible for payment of your Account upon:
- • You reach early retirement age 55 and retire from employment with a contributing employer;
- • You reach normal retirement age 65 and retire from employment with a contributing employer;
- • You become totally and permanently disabled as evidenced by a written certification from a physician acceptable to the Trustees.
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• You terminate your employment and have meet one of the following requirements:
- o You have no contributions from any employers contributing to the Plan during at least one Plan Year and your account balance is no more than $15,000; or
- o You have no contributions from any employers contributing to the Plan during at least one Plan Year and you have ceased all employment and business occupation with a Related Organization and have an account balance of more than $15,000.
- • Upon your death, your beneficiary will be entitled to 100% of your account balance.
For further information, please refer to your Summary Plan Description or contact the Fund Office.
Death
In the event of your death, the unpaid balance of your account will be paid in a lump sum to your designated beneficiary.
