Everyone knows that a financially secure retirement doesn’t happen overnight; it requires careful planning. But a lot of people are put off by what they think will be a complicated process. That is why we’ve gone out of our way to make enrolling in the BAYADA Home Health Care 401(k) Plan as straightforward and understandable as possible.
You can participate if you:
- Are aged 21 or older
- Have completed 1 year of service
- Have completed 1,000 hours of service during your first year of employment or any following calendar years
The BAYADA 401(k) Plan makes saving simple. It features:
- Employer contributions that can help boost your own savings—it’s like getting a bonus.
- GoalMaker®— an investment solution that helps you choose your investments and stay on track throughout your retirement planning.
- Automatic payroll deductions make saving easy.
- Wide array of investment options enables you to develop a strategy that best suits your needs.
- Interactive tools (such as the Retirement Income Calculator) to help you manage your account and access retirement planning and education.
Your contribution and investments
As of April 1, 2019, BAYADA has added a Roth feature to the 401(k) plan. You can contribute 1% to 100% of your pay, up to the IRS maximum of $19,500 for 2020 on a before-tax or after-tax basis (with the exception of Highly Compensated Employees (HCEs), who are capped at 4%).
What is the difference between traditional pre-tax contribution and Roth after-tax contributions?
Traditional pre-tax contributions come out of your pay before taxes are deducted, so you can save on your taxes now. Every pre-tax dollar you contribute costs less than $1.00 in take-home pay. Roth contributions come out of your pay after taxes have been withheld. Your take-home pay is reduced by the amount you contribute, but your contributions are never taxed again and any investment earning won’t face federal taxes as long as you hold the account for at least 5 years from January 1st of the year of your first Roth contribution AND you have either attained age 59.5 at the time of withdrawal or are withdrawing due to death or disability.
If you are or will be at least 50 years old in 2020, you can make an additional before-tax or after-tax catch-up contribution of up to $6,500 per the IRS 2020 maximum.
- Go to prudential.com/online/retirement, or call 877-778-2100.
- Tips and tools for retirement planning Prepare with Prudential website
- 401k Fact Sheet
- Roth Brochure
- BAYADA Home Health Care 401(k) Summary Plan Description 2020
- Webinar: How Having a Game Plan Can Help You Secure Your Retirement
- In order to set up an account rollover (shell account) prior to meeting the eligibility requirements, please contact the Benefits office at 877-708-7460.
- If you have met the eligibility requirements and would like to rollover funds from a previous 401(k), please contact Prudential’s rollover line at 800-249-2430.
Each year, BAYADA may make matching contributions to your 401(k) account on your behalf. The match is a discretionary contribution; it is not mandatory, and BAYADA may change or suspend the match in any given year. Historically, BAYADA has matched employee contributions at 35% of the first 4% of employee contributions, for a maximum match of 1.4% of eligible compensation. To be eligible for the match, you must have completed the plan eligibility requirements of age 21, 1 year of service and 1000 hours during your anniversary year or subsequent plan year. If you separate from service during the year, in addition to having met the plan eligibility requirements, you must have worked over 500 hours in that year to qualify for that year’s match allocation. The employer match contribution is funded annually after the end of the plan year, usually by the following March.
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