Benefits » Retirement » TCP2
LANS offers eligible employees in TCP2 the opportunity to enroll in a tax-deferred 401(k) Retirement Plan, which includes a Company Match and Service Based Contribution, to help provide financial stability in retirement. [The Tax-Deferred 401(k) Plan is described under Section 401(k) of the Internal Revenue Code.] A future benefit from this plan is based on participants' voluntary contributions plus earnings; vesting is immediate. Fidelity Investments is the designated administrator and record keeper of the 401(k) Retirement Plan, and provides all account services. You may consider consulting a tax advisor or financial planner before enrolling.
In order to participate in the TCP2 401(k) Plan,
If you are classified as an independent contractor, independent consultant, non-employee consultant or leased employee of LANS, you are not eligible to participate in the 401(k) Retirement Plan. Bargaining unit employees are not eligible to participate unless they are subject to a bargaining agreement that provides for participation in this plan.
To help you save for retirement, LANS offers a per-pay period elective matching contribution and a non-elective, service based, contribution (annually).
LANS will match your before or after tax contributions, dollar for dollar, up to 6% of your eligible compensation for that pay period. This means that the LANS matching contribution could be as much as 6% of your eligible compensation for that pay period. LANS does not match 6% of your gross salary as a lump sum, or as a "catch up," if you do not participate in the plan for the full year.
LANS will determine your eligible years of service (UC + LANS) on December 31st of each year and contribute a percentage of your annual compensation into the 401(k) plan (see table below). You will receive this distribution to your account in January or February. This is also referred to as a "non-matching" or "non-elective" contribution because no employee contribution or election is required for this to occur.
| Years of Service | % of Contribution |
|---|---|
| 0-9 | 3.5% |
| 10-19 | 4.5% |
| 20+ | 5.5% |
By logging on the Fidelity website, you can:
Click on "Access My Benefits." If you are registered, log on with your User Name and Password. If you are not registered, click on "New User Registration" and follow the instructions to create a password.Questions? Contact Fidelity's Customer Service Desk at 1-800-343-0860.
Contributions may be made only through salary reduction and may only come from income paid through the LANL/LANS payroll system. Contributions
Upon enrollment, you choose a percentage of salary you will contribute through biweekly payroll deductions up to your maximum annual contribution (MAC) amount. (Under this method, contributions change proportionately as your salary changes.)
Your MAC is determined by your age on the last day of each calendar year.
Please note that the MAC for 2008 remained at 2007 levels. Any change to the MAC for 2009 will be noted as soon as published by the IRS.
| MAC Limits (By age on December 31, 2007) | |
|---|---|
| If your age is | Your MAC is |
| <50 year | $16,500 |
| > or = 50 years | $22,000 |
Plan Contribution Maximum: the total that can be contributed to your LANS 401(k) Plan from all sources (employee and employer contributions, before and after tax), is $45,500.
Excess contributions? Payroll systems monitor your contributions throughout the year, so generally you will not over contribute to your plan. Although the earnings are subject to ordinary income taxes for the year in which the excess amount is refunded, they are not subject to the penalty taxes on early distribution.
After determining how much to contribute, you should indicate the investment fund(s) or mutual fund(s) in which you want to invest your contribution(s). LANS offers a group of funds to which you may direct your contributions, as well as the Fidelity Freedom Funds. You may view a listing of investment options (pdf) or contact Fidelity Investments for more information.
The 401(k) plan accepts rollovers of taxable distributions from other qualified plans. Active LANS employees may roll over money into the plans. Some distributed penalties may apply. For more information, contact Fidelity Investments.
The performance history of the Fidelity funds offered by LANS is available on Fidelity's website.
Investment objectives and financial needs change over time, so it's important to remain flexible to modify your investments as needed. You may
You can transfer your money between funds online or by phone:
FITSCo provides daily valuation record keeping which includes:
You can borrow your 401(k) Plan money if you're an active LANS employee with at least $1,000 in the Plan. Because the money is borrowed, rather than withdrawn, it isn't subject to income taxes or early distribution penalties. Before requesting a loan, refer to the Fidelity website for details or call Fidelity customer service at 1-800-343-0860.
Leave of absence Termination Reappointment |
Questions? Contact the Lab’s Benefits Office at 505-667-1806.