401k Resources & FAQs

A 401(k) is an employer sponsored benefit that your Operator generously set up that allows you to save money, invest, save on taxes, and have the chance to receive a matching employer contribution. You have the ability to defer money directly from your own paycheck to save towards retirement and your Operator is able to come alongside you to provide a company contribution.

Please feel free to read the information below or watch this video on the benefits of a 401(k) plan.

• It is easy! Your 401(k) contribution is pulled directly from your paycheck, in an amount you specify, automatically and before you can spend that money elsewhere. Putting retirement savings aside before it hits your bank account is a behavioral guardrail helping you prioritize preparation for retirement.
• Your money can work for you! Instead of saving your money in a bank account, you have the ability to invest in professionally managed investment options that will grow over time.
• Your Operator generously pays for all the administrative fees to help your money grow faster. This is a smart way to set yourself up for financial success.
• There are some great tax advantages to leveraging the 401(k). You can choose to put your own money in either pre-tax (saving taxes now) or Roth (saving taxes later). Your money can grow tax-deferred, meaning you won’t be paying taxes year-to-year while your money is invested in the 401(k).

iSolved invites all eligible employees to register for their account by sending an email to the work email address provided by their employer. However, the email is not required to register for the platform successfully. To register for the 401(k), please click here to visit the main iSolved platform. In the upper right hand corner, click Log In, and select Participant Log In. When logging in for the first time, your username is your full social security number (no dashes) and your password is the last 4 digits of your social security number. Once you have successfully logged in, you will be taken through a series of enrollment steps.

FREE Money from your Operator to help you grow your retirement savings faster! You will get a $ for $ (100%) match on the first 3% you contribute of your own money. Then you will get a 50% match on the amounts you contribute up to 5% of your income. Examples:

• If you contribute 2% of your own money, you will receive 2% from your Operator for a total of 4% of your compensation.
• If you contribute 3% of your own money, you will receive 3% from your Operator for a total of 6%.
• If you contribute 5% (or more) of your own money, you will receive 4% from your Operator for a total of 9%.What a generous benefit, one you'd be smart to take advantage of.

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The most you can contribute towards your 401(k) account in 2024 are the following:

• Up to $23,000 for ages 49 and below
• Up to $30,500 for ages 50 and above

This does NOT include what your Operator put in on your behalf. Usually, you will select either a percentage of your pay or a specific dollar amount you want to contribute each payroll cycle.

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The sooner you start saving/investing, the easier it is to reach your financial goals. Being able to retire someday starts with your decisions today. If possible, aim to save in the range of 10-15% of your income. Your Operator's generous employer match will help you reach this goal. Always aim to max out the employer match because that's FREE money! Make sure to contribute at least 5% of your paycheck in order to get the full 4% employer match. Together, these 2 amounts would equal 9% and get you a head start on your retirement journey.

Preparing for retirement is a major step; often this can be confusing and you may be unsure about where to put your Contributions. There are different ways that participants can contribute to their retirement plan.

There are two types of contributions you can choose from, these are Roth and Pre-tax. It's important to know that these contribution types are the most commonly associated with 401(k) or to other retirement plans and these are sometimes referred to as a ‘salary deferral’. Read below or watch this video to learn more about your different contribution options.

Differences between Roth and Pre-Tax

• The differences between Roth and Pre-Tax is pretty simple as the major difference is the tax treatment.

• Pre-tax: The strategy with Pre-tax is “don't tax me on it now, tax me on it later”. You’ll put money in without paying taxes on it, and you’ll pay taxes when you withdraw the funds after you retire. Your income tax burden for your current year will be reduced, but you’ll be on the hook for taxes later.
• Roth: The strategy with Roth is “pay now, don't pay tax on it later”. You’ll pay income taxes now, and then put that taxed money into the retirement account to invest. Your current year income tax burden won’t change, but you’ll never pay taxes on this money again.

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You have a few options when it comes to how to invest your 401k account:

1. Choose one of the available risk-based models.
2. Blend multiple risk-based models together.
3. Create your own investment model by selecting specific funds from the available 15-20 that make up the risk-based models.

The risk-based models vary from defensive, to moderate, to highly aggressive. There are pros and cons to each one. The more aggressive models have higher risk, but also higher potential reward or increase in value. Meaning, your account value may experience significant positive and negative movements over time. Think of it like an adult roller coaster ride! Typically, employees far from retirement invest more aggressively, because they can afford to make up for those up and down movements. The more conservative models have lower risk but also lower potential reward or increase in value. However, your account value will stay more steady over time. Meaning less fluctuation or more like a kids roller coaster ride! Those closer to retirement often invest more conservatively, because they can’t afford for their account value to experience sharp increases or decreases. The default investment selection if you make no changes is a Vanguard Target Date Retirement Fund based on the year (+/- 2 years) that you turn 65 years old. Use this site to reach out to us at Pandowealth to help you decide how to invest your 401k account to best achieve your financial goals.