Before You Begin
Complete the three steps below to enroll in Savings Plus.
- Select a Pre-tax or Roth (after-tax) 401(k) or a 457(b) Plan. You can establish more than one type of Plan, but because we issue a monthly administrative fee of $1.50 to each plan we recommend you select only one unless you can afford to contribute more than the annual limit for one Plan. For a side-by-side summary of the Plans, see the 401(k) and 457(b) Plan Comparison Chart that includes both the pre-tax and Roth options. If you choose to enroll in both Plans, you must enroll in one Plan at a time. Note: Roth assets are not available for loans.
- Decide your monthly contribution amount. The minimum and maximum contribution amounts are listed on the 401(k) and 457(b) Plan Comparison Chart. You can use the State Controller's Take-Home Pay Calculator to see what impact your contribution will have on your take-home pay.
- Have the following information ready:
- Mailing address
- Date of birth
- Email address (optional)
- Phone number (work and cell, including area code)
- Pay center (check your pay stub or ask your Personnel Office)
- Pay frequency (monthly, semi-monthly)
- Beneficiary(ies) (person or organization/trust)
- Date of birth
- SSN (optional)
- Mailing address (optional)
- Designation percentages
You are now ready to create an account and begin the enrollment process. Be sure to click on the “submit” button when you finish.
Think about this – only 1 in 100 65 year olds are considered wealthy. No one wants to work during their retirement years because they have to. However, time – one of the biggest advantages to investing – can work against you each passing day.
Here are several reasons to enroll in Savings Plus today:
- You are in control of your investing, and Savings Plus is ready to help.
- You have many investment options, and if you elect not to choose funds on your own, Savings Plus will set your contributions to the Target Date Fund that aligns with your date of birth and assumes age 62 as the age distributions will begin.
Investing involves risk, including possible loss of principal.
The tax advantage comparison
Pre-tax Contributions Roth Contributions You get a tax savings now because your taxable income is reduced by the amount of your contributions in the year you make them. Your contributions do not reduce taxable income now because they are made on an after-tax basis. Contributions and earnings will be taxed when you withdraw them in retirement, at the tax bracket you are in at that time. Contributions and earnings can be withdrawn tax-free in retirement, provided that you are age 59½ or older and your Roth account is at least 5 years old.
- The sooner you start, the more time is on your side. Savings Plus offers you flexibility in how you save for retirement. You can choose to make pre-tax, Roth (after-tax) or both types of contributions in either the 401(k) Plan, 457(b) Plan or both. See the 401(k) and 457(b) Plan Comparison Chart for the current year limit. Even if you cannot contribute the maximum, it is a good idea to increase your contributions each year.
The key point is this: people are living longer with many spending 20 years or more in retirement. Will you have saved enough for what you want to do? Now is the time to plan!
Playing catch-up. Please note - you must apply for the 457(b) traditional catch-up and be approved prior to taking advantage of this provision. At certain ages, there are two catch-up provisions that might be available to you:
- Age-Based Catch-Up begins at age 50
- 457(b) Traditional Catch-up begins three years prior to your normal retirement age, if eligible (457(b) Plan only). You must be age 47 or older to participate.
You can only use one of these catch-up provisions at a time under the 457(b) Plan. But you can use the age-based 50+ catch-up under the 401(k) Plan at the same time you are using traditional catch-up under the 457(b) Plan. All these plans can help you invest even more during your last years of work. For more information or to participate in the 457(b) catch-up provision, log into your account on the Savings Plus website or contact a Savings Plus Service Center representative.
Investing involves risk, including possible loss of principal.
As part of your annual financial to-do list, make sure you:
- Meet with a Retirement Specialist to review your account(s) and next steps.
- Check your beneficiary information to ensure it is current.
- Give your retirement savings a boost and increase your contributions when you receive pay raises or additional income.
If you want to contact us more often than once per year, please do! Just ensure that your Savings Plus account is reviewed at least annually.
One of the most important steps to planning your retirement future is to determine the amount you can contribute to your account(s). Savings Plus allows participants to begin contributing with a minimum contribution amount of $25 per month. Increasing your contributions when possible, can make a big impact on your retirement accounts.
Maximum contribution limits are determined by the IRS each year. Understanding the IRS annual contribution limit is important, especially when your goal is to contribute the maximum amount to your account each year. Even if you cannot contribute the maximum amount, increasing your contribution a little each year can help you move closer to your retirement goals.
Savings Plus offers a diverse lineup of investment choices from which to build your portfolio. You can choose a single Target Date Fund which automatically becomes more conservative as you approach a specific date, or build your own portfolio using the core investment fund lineup.
Keep in mind that investing involves market risk, including possible loss of principal. As you get started in the plan, we will help you understand market risk and strategies that may help you deal with this risk.
If you want help deciding what funds may be right for you, we are here to help. We offer different levels of assistance so you can get the help you need.
Savings Plus offers a diverse lineup of investment choices from which to build your portfolio. You can choose a single Target Date Fund that automatically becomes more conservative as you approach a specific date or build your own portfolio using the core investment fund lineup. The investment choices available to you through Savings Plus are selected according to the Plan's Investment Policy Statement and are categorized as follows: Stocks, Diversified Real Return and Short-Term Investments. In addition, a Diversified Real Return Fund and a Balanced Fund – the Socially Responsible Fund -- are offered. Target Date Funds invest in a wide variety of underlying funds to help reduce investment risk. The expense ratio represents a weighted average of the expense ratios and any fees charged by the underlying investment option. These funds are designed for people who plan to withdrawal funds during or near a specific year. Like other funds, target date funds are subject to market risk and loss. Loss of principal can occur at any time, including before, at or after the target date. There is no guarantee that target date funds will provide enough income for retirement.
You can review the latest Investment Performance Report or the Fund Fact Sheets below.
These funds are either Actively or Passively managed, as depicted in the chart below. Actively managed funds are managed by an individual manager or management team who try to outperform a corresponding index. Passive means that the portfolios of these funds mirror components of a market index. Passive managers try to match the performance of a corresponding index.
|Core Investment Funds||Target Date Funds|
|Target Date Fund-Income
Target Date Fund-2020
Target Date Fund-2025
Target Date Fund-2030
Target Date Fund-2035
Target Date Fund-2040
Target Date Fund-2045
Target Date Fund-2050
Target Date Fund-2055
Target Date Fund-2060
Target Date Fund-2065
Short Term Investment Fund-Cash
Short Term Investment Fund
|Bond Index Fund|
|Diversified Real Return
Diversified Real Return Fund
Socially Responsible Fund
Large Cap Fund
Mid Cap Fund
Small Cap Fund
|Large Cap Index Fund
Mid Cap Index Fund
International Index Fund
Small Cap Index Fund
An important approach to consider is to spread your investments across asset classes — a technique known as diversification or asset allocation. Doing so can help increase your total return according to the level of risk you are willing to accept. Diversification alone does not assure a profit or protect against loss in a declining market.
The simplest way to achieve asset allocation for your Savings Plus investments is to invest in a Savings Plus Target Date Fund that does the investing for you in a fund that aligns with your date of birth and presumes an estimated year you will begin taking distributions (e.g. Target Date Fund 2055). If you do not select funds at the time of enrollment, you are automatically enrolled in the appropriate Target Date Fund. The funds utilize the assumption that you will begin taking distributions at the age of 62.
Most people who participate in a retirement savings plan fall into one of three investor personalities. The "do it for me investor" does not have the time or knowledge to manage their investments, and would prefer to select a single fund that is rebalanced for them. The "do it myself" investor typically has the time and knowledge to build and maintain their own portfolio with little assistance, but may want some guidance from time to time. The "manage it for me" investor prefers to have a professional money manager manage their account for an additional fee.
Do it for me
Who prefer a less hands-on investing experience, Savings Plus offers Target Date Funds.
Target Date Funds offer the convenience of a single, diversified investment strategy that automatically becomes more conservative as the fund approaches a specific retirement date. This date is selected in alignment with your date of birth and the assumption that you will begin taking distributions at age 62.
The Target Date Funds are comprised of the Savings Plus core investment funds, Savings Plus’ investment line-up featuring a broad range of asset classes with differing levels of risk/reward potential.
Target Date Funds invest in a wide variety of underlying funds to help reduce investment risk. So, in addition to the expenses of the Target Date Funds, you pay a proportionate share of the expenses of the underlying funds. Target Maturity Funds are designed for people who plan to withdraw funds during or near a specific year. Like other funds, target date funds are subject to market risk and loss. Loss of principal can occur at any time, including before, at or after the target date. There is no guarantee that target date funds will provide enough income for retirement.
Do it myself
Savings Plus allows you to build and manage a customized portfolio by using the Savings Plus core investment funds. Another available option is the Personal Choice Retirement Account (PCRA), which is a Self-Directed Brokerage Account (SDBA), administered by Charles Schwab & Co. The benefit of this option is that it allows you the freedom to select and manage your portfolio from a much larger variety of investment choices, as long as you maintain a minimum balance in the Savings Plus core investment funds. Learn more about the Schwab PCRA.
If you also want help when you need it, use our free My Investment Planner offered through Wilshire to create a more guided investment strategy. Once your strategy is in place, you can manage your account and implement or modify the recommendations provided. If you choose this investment method, remember to check in regularly with your Retirement Specialist to ensure your investing style is accurate and you are on track to reach your savings goals.
Manage it for me
If you prefer to have a professional investment management firm actively managing your portfolio, you can elect to invest through Nationwide ProAccount®, a service that is managed based on your risk tolerance and your age. While enrolled, your account is monitored and adjusted over time to keep you on track toward your retirement goals. Nationwide ProAccount is comprised of the Savings Plus core investment funds and features a broad range of asset classes with differing levels of risk/reward potential. An annual program fee based on assets managed is assessed for this service.
Contact us today to talk about the options available to you. Contact us today for more information regarding the benefits, risks and fees related to ProAccount.
Investment advice for Nationwide ProAccount is provided to plan participants by Nationwide Investment Advisors, LLC ("NIA"), an SEC-registered investment adviser. NIA has retained Wilshire Associates Incorporated ("Wilshire") as the Independent Financial Expert for Nationwide ProAccount, to make the investment decisions for the program. Wilshire is not an affiliate of Nationwide Investment Advisors, LLC (NIA).
Once you enroll, you will want to set up online access so you can view account details 24/7. We offer convenient, secure account access with encryption and firewall protection.
Here are some things you can do once you have online access to your account:
Manage your account
- Check your total account balance
- Update your personal information
- Get current and past statements (effective with 1Q 2016 statements managed through Nationwide)
Manage your money
- Verify your contribution dates and amounts
- Change how much you contribute and how your money is invested
- Review available investment options, see fund performance and research funds
- Sign up to have your account automatically rebalanced every quarter (Automatic Asset Rebalancing or AAR)
Get the help you need
If you need help setting up online access, we can walk you through it. Talk to one of our Savings Plus Retirement Specialists today.
It only takes a few minutes to sign up.