These FAQs are general in nature. A participant in a retirement plan should confirm with their Plan Administrator any details specific to their own plan.
This post is a continuation of Help for retirement plan participants - FAQs Part 1.
Q8. Can I join my company’s retirement Plan at any time?
A8. There is often a waiting period involved before you are eligible to participate in a retirement Plan. To become eligible may take a few different steps:
- Waiting period. This is the length of time you must be working for the company. This is sometimes called the Service Requirement for meeting eligibility.
- Age. Many Plans require that you attain a certain age before you can be eligible for the Plan. The Plan cannot require that you be more than age 21 to meet eligibility.
- Entry date. After you have worked enough to meet the waiting period requirements, and you are old enough, then you enter the plan on the next Entry Date. Sometimes this is called Open Enrollment.
Check your Summary Plan Description to find out about your Plan’s eligibility requirements.
Q9. How do I enroll in my company’s Plan?
A9. There are typically forms to complete to enroll in your company’s retirement Plan. In many cases, these forms are on-line, but some Plans still require paper submission of forms. An example of forms you may need to complete are as follows:
- Salary deferral agreement. On this form you indicate how much you want to have come out of each paycheck to be deposited to the Plan.
- Dollar amount or percentage of pay
- Pre-tax contributions or after-tax (Roth)
- Beneficiary form. In the event of your death, who would receive the funds in your account?
- Primary beneficiary. This is the person who would receive the funds in your account. If you are married the Primary Beneficiary must be your spouse unless you have your spouse sign a waiver to this benefit.
- Secondary or contingent beneficiary. If the primary beneficiary goes before you or goes with you, then the funds in your account would be paid to your contingent beneficiary (or beneficiaries). Multiple people can serve as contingent beneficiary. If you have a family Trust, then the Trust is typically the contingent beneficiary.
- New account form. Your Plan’s investment provider will likely have a form for you to complete. If your Plan allows you to manage the investments in your account, it is on this form that you will fill out your initial investment elections.
If you have any questions about the forms needed for your Plan ask your company’s Human Resources department. Your Plan’s investment advisor can provide you with information to help you select the investments for your Plan.
Q10. How do I make changes after my initial paperwork is submitted?
A10. Timing for making changes varies, but here is a general rule-of-thumb that might be helpful.
- Salary deferral changes. Submit changes to your payroll or HR department in writing. There may be specific times that your payroll department will process changes, so check with them. Make sure you check your pay stub to confirm that your change was processed, and let payroll know immediately if a revision is required.
- Beneficiary changes can typically be submitted anytime. If you get married, divorced, have or lose children, make sure you review and update all of your beneficiary information.
- Personal information. You can typically submit address or phone changes at any time.
- Investment elections. Your investment custodian will provide information about how and/or when you can request changes to your investment mix.
