What You Need to Know
A 401(k) retirement plan is an easy, convenient way to save for retirement and an important part of your future financial security. The University will make a contribution of 3%–7.5% to your account, depending on your years of service—that’s FREE money! You’re eligible to participate the first of the month following your date of hire, so make saving during your working years a priority. A little bit can go a long way over time.
Highlights of the 401(k) Plan
The Alliant International University Retirement Plan, record-kept by Transamerica, is a tax-qualified retirement plan. You’re eligible to enroll on the first of the month following your date of hire or status change as an eligible employee.* Here’s what you need to know:
- You can make pre-tax or after-tax (Roth) payroll contributions to your account. You can change your contribution amount at any time.
- You can choose to invest your account in a variety of options. Any investment earnings grow tax-deferred.
- The University will contribute between 3% and 7.5% to your account automatically, depending on your years of service.
- At the end of each year, the University can decide to make a discretionary additional contribution to your 401(k) Plan.
- You are immediately vested in your own contributions, the University’s contributions, and any investment earnings.
Enrolling in the 401(k) Plan
A feature of the University’s Plan is automatic enrollment. If you do nothing in the 45 days from your eligibility date—generally the first of the month following your date of hire—you will be automatically enrolled in the 401(k) Plan. You can opt out by electing a contribution rate of 0%.
If you do not enroll or opt out of the 401(k) Plan within 45 days, you will be enrolled automatically at a 5% pre-tax contribution rate. Your contributions will be invested in the TIAA-CREF Institutional Target Retirement Funds, which is a group of single target date funds; one will be chosen based on your assumed retirement age of 65.
You can roll over funds from another 401(k) or qualified retirement plan, or from an individual retirement account (IRA), into the Alliant International University Retirement Plan. Contact Transamerica for more information.
Understanding the 401(k) Plan
You can contribute 100% from your eligible pay, up to IRS maximums ($290,000 for 2021) to your 401(k) Plan through convenient payroll deductions. You decide if you want to make pre-tax or after-tax (Roth) contributions, or a mix of both. In 2021, the maximum you can contribute annually is 100% of your eligible pay—your contributions and University contributions combined—limited to $58,000.
Catch-up contributions. Beginning with the year you reach age 50, if you are making the maximum Plan or IRS pre-tax and/or Roth contributions, then you are eligible to make additional catch-up contributions of up to $6,500 for 2021, for a combined contribution limit of $26,000. You can make a catch-up contribution election through the Transamerica website.
The University will contribute to your account depending on your years of service:
- After 1 year from your eligibility date: 3%
- After 2 years from your eligibility date: 7.5%
The University contributes to your account whether or not you contribute.
Your service could be impacted by when you started work and if you worked at an affiliate or subsidiary University.
Vesting is the process by which you become entitled to the full amount of your 401(k) Plan. You’re immediately 100% vested in your contributions, University contributions, and any investment earnings.
You can choose from a range of investment options and select an investment mix that best suits your goals, investment time horizon, and risk tolerance. Descriptions of the investment options, as well as planning tools, are available on the Transamerica website.
If you don’t want to create your own investment portfolio, you can elect the TIAA-CREF Institutional Target Retirement Funds, which is a group of single target date funds; one will be chosen based on your assumed retirement age of 65.
Find out when you can make withdrawals from your 401(k) Plan without tax penalties.