Overview
Meeting your current fiscal obligations and having the ability to freely make financial choices contributes to a positive quality of life. SPARC knows the value of feeling financially secure and is helping you prepare for the future by offering a 401(k) Investment and Savings Plan to assist as you plan for and meet your financial goals. The 401(k) Investment & Savings Plan provides many investment options and resources, making the road to retirement clear and rewarding.
Employees can voluntarily elect to have a portion of their pay deducted and contributed to the 401(k) Investment & Savings Plan account each payroll period. You can make standard pre-tax contributions, Roth after-tax contributions, or a combination of both.
Key advantages
Company match
SPARC contributes to your account to help your savings grow faster.
Current tax savings
You’ll pay less in income taxes when you make before-tax contributions from your paycheck.
Tax-deferred investment growth
Before-tax contributions let your money grow without being taxed until you withdraw it.
Wide range of investment options
You choose how you want to invest your money.
Eligibility
You are eligible to contribute to the plan if you are at least 21 years old and have completed 500 hours of service with the Company.
Automatic Enrollment
Your entry date into the 401(k) plan will be the first day of the month following the date you satisfy the eligibility requirements and your first deferral from your paycheck will come shortly thereafter.
You will be automatically enrolled in the plan at a 3% before-tax contribution rate approximately 30 days after your eligibility date.
You may change your contribution rate and/or your investment elections online at any time through Voya. You may elect to make Roth (post-tax) deferrals instead of or in addition to your auto-enrolled pretax deferrals. Any changes you make will be reflected within two pay periods.
What if I don’t want to participate?
You have 90 days from the first auto-enrolled contribution to withdraw your funds from the account. These withdrawals are not subject to any penalties.
How to Withdraw Funds and End Enrollment
You should complete sections 1 through 4 of the Voya Permissible Withdrawal Form. The Plan’s Authorized Signer (i.e., Employer, Trustee, or Named Fiduciary) should complete sections 5 & 6. The Third-Party Administrator (if applicable) should complete section 7.
In order to calculate the amount to be distributed back to you two dates are important to keep in mind: “Election Date” and “Effective Date of Election”.
- The Election Date is the date you sign the form electing the return of the defaulted elective deferrals. You must make the election within 90 days (or lesser as determined by the plan trustee) from the date of the first deduction from your paycheck.
- The Effective Date of Election is the last day of the payroll period that begins after the date of the election. The amount to be distributed are the defaulted elective deferrals (adjusted for gain or loss) that were made on your behalf through the effective date of the election.
Once the completed form is submitted, payroll will be adjusted to reflect a contribution rate change of zero.
For more information, contact Voya.
Available Investment Options
Because SPARC knows just how important it is to start saving for retirement as early as possible, you are automatically enrolled into 401(k) Investment & Savings Plan and into a Voya Target Retirement fund at 3%.
The Voya Target Retirement Funds are based on factors such as your age and the year in which you plan to retire and feature investments that are in line with helping you grow your investments as much as possible until your identified retirement date. The target date funds are diversified to manage the degree of risk and return as you age. These funds often decrease in risk as you get closer to retirement, making your investments less prone to market volatility.
You may choose to keep your funds in the Target Retirement Fund or move them to other investment options that have various degrees of risk and return, including Voya Target Retirement Funds.
Investment Basics
Here some terms and definitions you should be familiar with around investments:
- Target retirement funds: mutual funds that include investments with a balance of risk and return that becomes more secure as you get closer to retirement
- Stocks: shares of ownership in a company
- Bonds: debt security. AKA “I.O.U.”
- Cash: short-term investments (money markets, treasury bills, CDs)
- Mutual funds: a diversified collection of investments that can include stocks, bonds, cash real estate, and other financial assets, all managed by a professional investment specialist
What’s most important for you to remember is the concept of diversification. You should have your retirement savings spread across multiple investments, which is called diversification. The Voya Target Retirement fund that you are automatically invested in is a diversified type of mutual fund, so you’re already on the right path!
Watch the video for more on how to get started on your retirement journey.
Your Contributions
You may contribute between 1% and 80% of your eligible pay to your plan account, up to annual IRS limits.
2024 Contribution Limits
These limits include your before-tax contributions, Roth after-tax contributions, or a combination of both.
Before-tax vs. Roth after-tax: What’s the difference?
The 401(k) Investment & Savings Plan gives you the flexibility to save for retirement with before-tax contributions, Roth after-tax contributions, or both.
- With before-tax contributions – the money goes into your account before taxes are deducted, so you keep more of your take-home pay.
- With Roth after-tax contributions – the money goes into your account after taxes are withheld, but both your contributions and any associated earnings can be withdrawn tax-free in retirement.*
*In order for Roth earnings to be withdrawn tax-free, you must be at least 59½ (or the withdrawal follows death or total disability), and at least five years must have elapsed since your first Roth contribution.
Catch up!
If you’ll be 50 or older this year, take advantage of the opportunity to contribute up to an additional $7,500 in catch-up contributions.
Can I rollover an old 401(k)?
Rollovers from other plans are accepted at any time after attaining eligibility to enroll in the plan. Use the rollover form.
Company Contributions
SPARC helps you reach your retirement goals faster by making matching contributions to your account. SPARC contributes 100% of the first 1% of your contributions to the plan and 50% of the next 5%. Meaning, if you contribute 6% of each paycheck to your 401(k) account, SPARC will match up to 3.5% of it!
SPARC’s matching contributions are made on an annual basis.
Here’s how the company match works if you earn $50,000 and contribute 6%:
*Eligible pay includes your base salary or hourly rate, including any bonus paid.
Don’t say no to free money!
Contribute at least 6% to take full advantage of the match — otherwise, you’re leaving free money on the table. Log in to your Voya account to increase your contribution rate.
Vesting
Vesting is another way of saying “how much of the money is yours to keep if you leave the company.”
You are always 100% vested in your own contributions, including any investment gains and losses on the money. You become vested in company contributions after two years of service.
Withdrawals and Loans
The money in your account is a long-term investment to help you prepare for your financial needs in retirement. However, under certain circumstances, you may be able to access money from your account before reaching retirement age. For more information, visit Voya or call 800-584-6001.
Consider your options
If you’re considering taking a loan from your 401(k), be sure to research the pros and cons of borrowing from your retirement accounts. You can take advantage of lower interest rates by borrowing money from yourself, but when you pull your money out of the market, you’re missing out on potential gains.
For more information on loans and withdrawals, visit Voya.
Managing Your Account
Take an active role in your retirement planning with these helpful tools and resources.
Voya: Tap the App to Save in a Snap
The Voya Retire mobile app is an easy, secure, and convenient way to access and manage your retirement account all in one place — so you can help boost your retirement savings and manage your money all while on the go. You’ll have access to account details and management, as well as interactive tools that allow you to:
- Simulate estimated retirement income using myOrangeMoney®
- Learn as you go with Voya Learn®
- Get access to investment advice
- Get answers to your questions with chat capabilities
- View claims status
Download the Voya app for iPhone or Android today!
Before investing, carefully consider the funds’ or investment options’ objectives, risks, charges, and expenses. Call