Annual Eligibility Notice for 403(b)/457 Retirement Plans

Heartland AEA offers employees the opportunity to voluntarily save for retirement by participating in the Iowa Department of Administrative Services’ Retirement Investors’ Club (RIC) 403(b) and/or 457 plans. You can participate in these plans by making pre-tax contributions (before state and federal income taxes are computed) and/or Roth after-tax contributions. You are eligible to participate in this plan whether or not you are actively contributing to it.

The RIC plan provides you the option to select between four investment providers: Horace Mann, Mass Mutual, VALIC and Voya.

Plan details:

• The minimum contribution is $12.50 per pay period.
• You have the option of traditional pre-tax contributions and/or post-tax Roth contributions. You should work with your financial advisor to determine what is best for your retirement planning. If you want to model the effect of the tax savings from a pre-tax investment, go to the Employee Online tab on your Employee Dashboard and click on the “What If” calculator and enter the amount of your pre-tax contribution. This will show you how making the contribution on a pre-tax basis will affect your paycheck. The post-tax Roth investment is designed to offer tax savings at the time of withdrawal and not at the time of investment.
• You can change the amount of your contribution 12 times per year (at the beginning of each month). All changes received by the end of a month will be effective at the beginning of the following month. For example, a change submitted between Jan. 1–31 will be effective on your Feb. 15 paycheck.
• The Agency does not offer matching funds, but it is still very beneficial for you to start saving for retirement, even if you are only able to start with a small amount.
• For 2016, the maximum amount you may contribute per year is 100% of your compensation up to $18,000. Also, if you are 50 or older, you may contribute an additional $6,000. In some cases you may also be able to make additional catch-up contributions. A calculation is required to determine if you’re eligible for this special provision.

To start your contributions, contact one of the RIC’s investment providers. Contact information is on RIC’s website.  On the left side of the page, click on “Providers and Investments.” Clicking on the “Advisor” button to the right of each provider will give you a list of agents who are authorized to sell their products. The agent can send you enrollment information, and at your request, will schedule an appointment to discuss your individual financial goals. Heartland AEA’s Election Forms can be found on the Intranet > Benefits > Retirement > 403(b) or 457 Election Forms.

This Notice is not intended as tax or legal advice. Employees are encouraged to contact their financial advisor or tax professional with any tax or legal questions. If you have any questions about participating in these retirement plans, contact Steve Jordan, Senior Payroll Specialist, at ext. 14908.